Federal authorities seize Bitcoins for what may be the first time

Bitcoin has existed as an all-digital alternative to conventional currency for some time now, and it has garnered a reputation as the premier currency for illegal dealings. While not without a 'paper trail', tracking transactions through the currency is considered significantly harder than with cold hard cash.

In Charleston, South Carolina, a change has occurred that could upset this use; federal authorities seized 11.02 Bitcoins due to alleged drug charges. The value of Bitcoins is hard to pin down due to constant fluctuation. At the time of writing, 11.02 Bitcoins is the equivalent of 814USD.

An Eric Daniel Hughes was arrested in connection with violation of the Controlled Substances Act, though little else is known. What is known, however, is that Hughes has had his apartment raided before. Among other things, Suboxone and Clozepam were found, while Hughes seemingly sold marijuana to undercover officers.

Adam Levine of Let's Talk Bitcoin has stated the following:

“This is the first time something like this has happened with Bitcoin, and the interesting subtext is: We don't have any idea just how involved the DEA is with Bitcoins.”

Shady transactions through Bitcoin are, unsurprisingly, not conducted via conventional websites. Instead, most of the time it is done through the 'Dark Internet', or 'darkweb'. The most well known vendor in this dark web is the Silk Road, which has been thoroughly investigated by numerous people.

Source: Post & Courier

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26 Comments

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Anybody found a mugshot or some sort of picture of the guy? I live in Charleston, SC and I know a Eric Hughes. Wondering if it's same guy.

Max Norris said,

Click the source link at the end of the article.

Right. Should probably do that more often. Not the Eric I'm thinking of.

Lone Wanderer Chicken said,
I never really understood what Bitcoins are but I get an image of the coins from Mario Bros.

HAHAHA, I like that. LOL.

I have to agree, I don't really understand the bitcoin thing either.

They're basically coins you spend more money in electric bills to "mine" them than they're worth. Somehow they set up a system where people with more money to waste on electricity and hardware are the ones who have this imaginary scam of a currency.

M_Lyons10 said,
Probably because they've destroyed the value of the USD over the last few years...

I would,rather,say after the US unilaterally walk away from the Bretton Woods system......

Fritzly said,

I would,rather,say after the US unilaterally walk away from the Bretton Woods system......


Though I would agree with you, it wasn't until recently (Largely under the Obama Administration) that we began printing money at such an unmaintainable rate, leading to not only a dramatic decline in the value of our currency, but the questioning of even it's claimed value...

Spicoli said,
There has been not destruction of the value of the USD. A lot of people theorize all the deficit spending will do that, but it hasn't happened yet.

Hasn't happened yet because we keep printing more and more flooding the market with worthless paper, that will end soon, the Fed has already hinted at it, and when it happens the devaluing of the Dollar will catch many off guard

The tone of the "article" is completely negative and is exactly what big banks, the owners of all governments, want. This is the same old playbook, take anything you want gone, cherry pick the bad uses, demonize the users and blah blah blah. Bitcoins are a threat to the status quo and I feel obligated to make comments like this anytime I see this crap. So what if criminals use it, what about all the other people that also use it, not worth mentioning? Very one sided at the least.

Hahaiah said,
The tone of the "article" is completely negative and is exactly what big banks, the owners of all governments, want. This is the same old playbook, take anything you want gone, cherry pick the bad uses, demonize the users and blah blah blah. Bitcoins are a threat to the status quo and I feel obligated to make comments like this anytime I see this crap. So what if criminals use it, what about all the other people that also use it, not worth mentioning? Very one sided at the least.

Your government wont allow bitcoins to operate freely like they do now.

Actually I'm guessing that this could've been publicised to thwart would be deviates, as it now seems impossible to pin any criminal element to bitcoin transactions, partly due to the fact they can be Mined! Is also cloud based, so no shutting down of rogue servers etc.

I think you misunderstood the circumstances here, he was arrested on a drug charge, they seized bitcoin currency. This was either likely what he used to pay for or accept for the selling/buying of the drugs. The point of the story is this is the first time bitcoin has been seized like this. He wasn't arrested for anything specific to bitcoin.

Yeah sorry about that when it comes to legal terms or medical terms or others professional subjects my english level is somewhat low.

LaP said,
Paper money is used for crime too. Should we arrest people who print it ?

Yes they should. You're not allowed to print your own currency.

LaP said,
Paper money is used for crime too. Should we arrest people who print it ?

Of course, and they do. Counterfeiting money has always been illegal.

Edited by Bonfire, Jul 8 2013, 12:58am :

xendrome said,
This was either likely what he used to pay for or accept for the selling/buying of the drugs.

How can they be sure he didn't mine those coins? I would at the very least, have a dedicated data mining box hooked up.. Just in case..