Bitcoins Seized In Drug Bust

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.'"

Comments

It was bound to happen

[mcgrew]

I'm surprised it took so long.

Re:It was bound to happen

[Anonymous Coward]

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

Re:It was bound to happen

[Anonymous Coward]

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

Re:It was bound to happen

[pecosdave]

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.

Re:It was bound to happen

[killkillkill]

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.

Re:It was bound to happen

[Anonymous Coward]

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

Re:It was bound to happen

[Anonymous Coward]

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.

Re:It was bound to happen

[__aaltlg1547]

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

Re:It was bound to happen

[cold fjord]

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.

Re:It was bound to happen

[fustakrakich]

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.

Re:It was bound to happen

[Kjella]

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.

Re:It was bound to happen

[Fnord666]

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

Re:It was bound to happen

[Alsee]

Time flies when you're having fun.

Extra flies when you're fucking a horse.

-

Re:It was bound to happen

[dutchwhizzman]

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.

Public Record

[bill_mcgonigle]

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

Nothing new.

[camperdave]

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.

Business models

[Dunbal]

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?

How to make money selling drugs.

[six025]

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.

Re:Which country do you live in?

[AK Marc]

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.