Bitcoin Can’t Escape the Long Arm of the Law

by Mercator Advisory Group 0

Despite the promises that it would be an anonymous currency, Bitcoin is not beyond the reach of the long arm of the law. The Drug Enforcement Agency announced that it has seized Bitcoins from a suspected drug dealer and deposited them into its own account, according to letstalkbitcoin.com:

The Drug Enforcement Administration posted an Official Notification that Bitcoin (i.e. property) belonging to Eric Daniel Hughes was seized for forfeiture pursuant to 21 U.S.C. § 881, because the property was used or acquired as a result of a violation of the Controlled Substances Act (21 U.S.C. §§ 801 et seq.)

DISTRICT OF SOUTH CAROLINA

13-DEA-581051, 11.02 Bitcoins, Acct.#1ETDwGUC1QcjYuehFr3u1FD3MvDaUs7SFy,

VL: $814.22 which was seized in Charleston, SC from Eric Daniel Hughes AKA Casey Jones on April 12, 2013

TechCrunch points out that the DEA’s action shows that law enforcement agencies are more tech savvy than some criminals may be giving them credit for:

What is fascinating is that the DEA has already moved to cover all of the cryptocurrency bases. They they have their own account to where the 11.02 BTC was moved is one thing. However, that they discovered Hughes’ stash is entirely another. It suggests that the DEA, in the case, was aware of the Silk Road and Hughes’ activities – he was described in some postings as being an incautious drug salesperson – and that the sting went down online rather than, as they say, in real life.

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