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Bitcoins Seized In Drug Bust

Posted by samzenpus on from the funny-money dept.

First time accepted submitter Salo2112 writes "In a case believed to be the first of its kind, federal authorities have seized a Charleston man's virtual currency due to an alleged drug law violation with possible links to a shadowy online black market. From the article: 'The U.S. Drug Enforcement Administration recently posted a forfeiture notice indicating that agents had seized 11.02 Bitcoins worth $814 from 31-year-old Eric Daniel Hughes for allegedly violating the federal Controlled Substances Act. No other details were provided.'"

21 of 198 comments (clear)

  1. It was bound to happen by mcgrew · · Score: 4, Insightful

    I'm surprised it took so long.

    --
    Free Martian Whores!
    1. Re:It was bound to happen by Anonymous Coward · · Score: 4, Insightful

      Yes, but only because the USA's Federal Government hates competition.

    2. Re:It was bound to happen by Anonymous Coward · · Score: 4, Insightful

      And have a good backup. Even if the seized money is encrypted, it's still seized and unlikely to be returned.

    3. Re:It was bound to happen by pecosdave · · Score: 4, Insightful

      Why is this statement modded down? It's a perfectly legitimate assessment of the flow of money and labor. If people were allowed to trade their own labor or goods without having to invoke the mandatory use of Federal Reserve notes/bits it would be much more difficult for the USA's Federal Government to put a toll on that transaction. Indeed Bitcoin is a competing currency that allows people to bargain directly with one another which the Federal Government would interpret as competition - in much the same way Taxi unions in Houston declared bicycle rickshaws as "stealing" from them and had the rickshaws regulated out of existence. The US Government - unlike the Taxi Union - sees ALL business transactions done without them as competition and since they have direct law making power will address such things directly.

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    4. Re:It was bound to happen by killkillkill · · Score: 5, Interesting

      Most likely it was a sting operation and he sent the funds to an address the DEA had created. There was a transaction for that amount on the day they were "seized" linked to his account. If they seized the wallet on his computer I imagine it would have been more than that.

    5. Re:It was bound to happen by Anonymous Coward · · Score: 5, Funny

      147 hours fucking a horse on a live webcam is more than "a few".

    6. Re:It was bound to happen by Anonymous Coward · · Score: 5, Insightful

      Surely you mean the moron with Insightful mod?

      "Guy got caught dealing drugs, got his posessions confiscated, there were Bitcoins in there" - "It's because govt hates Bitcoin!"

      FFS, from items in other case in the seizure notice:

      13-DEA-582125, Snap-On Tool Cabinet and Assorted Tools, (1) Snap-On Rolling Tool Cabinet, #:s437254a; (6)
      Assorted Testers; (1) Snap-On 8 piece 1/2" Rachet/Wrench Set; (1) Snap-On 4 piece 1/2" Rachet/Wrench Set; (36)
      Assorted Screwdrivers; (16) Speciality Tools; (32) Assorted Allen Wrenches; (56) Assorted Sockets 3/8"; (22) Socket
      Extensions 3/8"; (1) Adapter 1/2" - 3/4"; (11) Assorted Rachets/Wrenches; (1) Nut Driver 1/4"; (1) Allen Tool Combo;
      (1) Ryobi Drilling and Driving Accessory Kit; (36) Assorted Rachets/Wrenches/Sockets; (5) Assorted Snap-On Tools;
      (4) Assorted Rachet/Extensions; (8) Assorted Vice Grips/Wrenches; (1) Blue Point Rachet Wrench Set 5/16"-3/4";
      (68) Assorted Combination Wrenches; (1) Snap-On Box End Combo 7/8"; (3) Assorted Wrench Sets; (1) Roberts
      Knee Kick Carpet Stretcher 10-412; (1) Snap-On 3x5 Toy Tool Box; (1) Ryobi Temperature Sensor, #:CW1112; (9)

      Government hates wrenches!

      captcha: deluding - it surely knows.

    7. Re:It was bound to happen by __aaltlg1547 · · Score: 5, Insightful

      They haven't banned cigarettes due to their being used to fund terrorism. We'll see.

    8. Re:It was bound to happen by cold+fjord · · Score: 5, Interesting

      If people were allowed to trade their own labor or goods without having to invoke the mandatory use of Federal Reserve notes/bits it would be much more difficult for the USA's Federal Government to put a toll on that transaction.

      Yes, we get that Bitcoin is potentially useful for tax evasion. Can you spell out why that is socially desirable?

      Indeed Bitcoin is a competing currency that allows people to bargain directly with one another which the Federal Government would interpret as competition

      People do bargain directly with each other now. The government isn't involved in that. But if good or services are sold, that transaction tends to be subject to taxes, although not always. And that does ignore the underground economy that tends to involve cash transactions.

      I don't think you are showing much of a case here.

      --
      much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
    9. Re:It was bound to happen by fustakrakich · · Score: 5, Insightful

      You don't have to convicted of anything to have your property stolen by the government. It has eminent domain over everything you have, including the corpse you presently occupy.

      --
      “He’s not deformed, he’s just drunk!”
    10. Re:It was bound to happen by Kjella · · Score: 4, Interesting

      Because it's totally off topic, this has nothing to do with what bitcoin is. If you get busted for drugs, the police will cease anything of value including cash, real estate, possessions, if you buy gear for your WoW character or land in Second Life with drug money that has resale value they can in theory cease that one too. The point is that bitcoins have been hyped up as anonymous money to buy drugs so lots of dealers should have bitcoins which makes it surprising that they haven't found any to cease before. Nothing here happened to his bitcoins that wouldn't have happened to anything else he owns.

      --
      Live today, because you never know what tomorrow brings
    11. Re:It was bound to happen by Fnord666 · · Score: 4, Insightful

      In the War on Drugs in the US, the Police can and will confiscate all your property if you are accused of a drug felony.

      FTFY

      --
      'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
    12. Re:It was bound to happen by Alsee · · Score: 4, Funny

      Time flies when you're having fun.

      Extra flies when you're fucking a horse.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    13. Re:It was bound to happen by HairyNevus · · Score: 3, Informative

      Actually, I didn't see the second link. After following the four links [1] [2] [3] [4] on that page (starting right under the picture) it might be that the tumbler system was exactly what they traced. I'm still trying to make heads or tails of these links in combination with this transaction provided above which seems to show the DEA account (1ETD...) sending money.

      --
      You were critically hit for no damage. The bruise will look nice, and maybe the scars will make good party talk.
    14. Re:It was bound to happen by dutchwhizzman · · Score: 4, Interesting

      I'd like them to ban the use of crude oil and derivative products because it's used to fund terrorism. After all, it is one of the larger contributing resources for several terrorist groups and dictators.

      --
      I was promised a flying car. Where is my flying car?
  2. Public Record by bill_mcgonigle · · Score: 4, Funny

    They'll have to enter the hash into the court records as evidence.

    --
    My God, it's Full of Source!
    OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  3. Nothing new. by camperdave · · Score: 5, Funny

    They'll have to enter the hash into the court records as evidence.

    Nothing new. I'm sure hash has been on record as evidence in drug cases before.

    --
    When our name is on the back of your car, we're behind you all the way!
  4. Business models by Dunbal · · Score: 4, Interesting

    Ahh the joys of self-financing government departments. "We believe those assets were used in connection with a crime". Suddenly, they don't have to prove anything, they just have to seize it and it's theirs. Nice and convenient. Can they even prove where the bitcoins came from?

    --
    Seven puppies were harmed during the making of this post.
  5. How to make money selling drugs. by six025 · · Score: 4, Interesting

    Anyone under the misapprehension that the drug war is about catching scum bag drug users or dealers should watch this excellent documentary:

    http://www.imdb.com/title/tt1276962/

    You'll learn who the really big players are. Hint: it's not who you think it is ;)

    Peace,
    Andy.

  6. More crappy moderation. by pecosdave · · Score: 3, Insightful

    As I comment this is at a -1.

    I would say not wanting to pay someone to violate your rights while monitoring and punishing your activities is a perfectly reasonable answer.

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  7. Re:Which country do you live in? by AK+Marc · · Score: 4, Insightful

    The other issue is that seizure is without proceeding. If you don't declare your cash when traveling across borders, they'll presume it's illegal and seize it until you prove otherwise (and that's long and expensive). If you do declare it, they'll likely seize it as well, they'll just know how much and where to look.

    There have been more than one case of a police officer (often chief or higher-up) that ordered a raid of a house, no drugs found, house still seized, then used as an undercover or safe house that made it functionally that officer's house. When you give financial incentive to bad behavior, then the bad behavior is encouraged, even if that wasn't the goal.

    There are simple fixes, but the governments don't ever agree to them. They like the for-profit seizures and tickets. The agency issuing fines (or seizures) shouldn't be the agency keeping the money. When you separate the money, you'll change the behavior. No matter how many speeding tickets the town issues, there will be no income from it. You'd see the speed traps decrease, and a greater focus on safety, rather than revenue. Make percentage-take camera systems illegal (where the company running the cameras gets a portion of the revenue). There are documented cases where they shortened yellow lights to catch more people, decreasing safety to get more revenue.

    Money is causing corruption, so remove the money from the equation.

    --
    Learn to love Alaska