A man from South Carolina became the first ever person to have Bitcoins seized by the U.S. government.
Eric Daniel Hughes, 31, was using the online currency to buy drugs at Silk Road, a site that only accepts Bitcoins.
DEA documentation indicates they took 11.02 Bitcoins from him, worth $814. While the forfeiture said nothing about Silk Road, there are reports that speculate this was the reason he was targeted.
Blog Let's Talk Bitcoin! connected his Bitcoin account number with a transaction made in April on Silk Road of exactly 11.02 coins.
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"This is the first time something like this has happened with Bitcoin," Adam Levine, editor of Let's Talk Bitcoin!, said. "And the interesting subtext is: we don't have any idea just how involved the DEA is with Bitcoins."
Silk Road users are also unaware how involved the government is with transactions happening on the site. Often referred to as the "eBay of drugs," the site sells all types of prescription drugs.
While authorities admit they seized Hughes' Bitcoins, they will not reveal how they did so.
Hughes has not been charged yet, but local authorities are looking to arrest him. Charleston, S.C. police raided his apartment in June and found 10 bags of narcotic Suboxone while searching.
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Levine believes police were able to confiscate his digital currency by using the same computer Hughes did to make the transaction or they did an online sting operation.