Federal authorities seized Bitcoins in Drug bust

Bitcoins are a digital currency that function like Internet cash. Believed to be the first of its kind, Federal authorities have seized seized 11.02 Bitcoins worth $814 from 31-year-old Eric Daniel Hughes for allegedly drug law violation with possible links to a shadowy online black market. Bitcoins themselves do not provide anonymity guarantees, but their design makes it possible for transactions to be much harder to trace than traditional payment systems like credit cards. But the virtual currency has no backing of any government and is highly volatile. The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted. - See more at: http://news.thehackernews.com/federal-authorities-seized-bitcoins-in-drug-bust#sthash.qnGl5VnU.dpuf