Bitcoins, used more in the digital realm.

Charleston nets a probable first in seizure of electronic Bitcoin currency

If you've not heard of Bitcoins yet, what you need to know is that it's a new electronic cryptographic currency that aims to replace transactions online and in the real world — and it looks like Charleston was the location of a first for the currency: seizure by the DEA.

The government alleges that Charleston resident Eric Daniel Hughes used 11.02 Bitcoins in an attempted drug transaction on the Silk Road site. 

So the DEA did what it does and apparently seized the funds, worth some $814.22. writes, in part:

The DEA appears to have been the first agency to seize actual Bitcoins from an individual with this seizure.  Exactly how the Bitcoin was seized is not known as of this writing. 

The Bitcoin address referenced in the complaint recieved a transaction for 11.02btc at 17:10:36 Blockchain time on the date noted as “seized”.  This could mean that either the DEA took control of a computer with an unencrypted wallet and transferred the amount to a DEA controlled wallet, or more likely that this was not an in-person confiscation at all.   This could be an illicit “Silk Road” transaction, where US authorities set up a “honeypot” selling account, and accepted the 11.02btc as payment.

Looks like Charleston is working to earn that Silicon Harbor title after all.

Filed in