The first bitcoin escrow transaction was completed by Bitcointalk Forum users

On October 16, 2010, a landmark event took place within the Bitcoin community: the first documented escrowed Bitcoin transaction. This transaction was conducted between two members of the Bitcoin Forum, Diablo-D3 and Nanotube, with Theymos serving as the escrow agent.
 

The transaction was significant because it showcased the potential for Bitcoin to be used in more complex financial transactions, beyond simple peer-to-peer transfers. Escrow services are essential in building trust between parties in online transactions, where the buyer and seller may not know each other and require a third party to mitigate the risk of fraud.
 

In this particular transaction, Theymos, a well-known figure within the Bitcoin community, held the bitcoins in escrow until the terms agreed upon by Diablo-D3 and Nanotube were met. Once both parties were satisfied, Theymos released the bitcoins to the appropriate party.