The first reported confiscation of Bitcoin by a government agency: 11.02 BTC

On June 23, 2013, The United States Drug Enforcement Administration (DEA) reported the seizure of 11.02 bitcoins, marking the first known instance of a government agency confiscating the digital currency. This event underscored the growing recognition of Bitcoin as a form of property subject to legal processes.
 

The seized bitcoins, valued at approximately $814 at the time, were taken from a South Carolina man who was attempting to purchase illegal substances with Bitcoin. The specifics of the seizure were not detailed in the DEA’s report, which appeared on the third-to-last page of a 128-page document. The nature of the substance the individual was attempting to buy was also not disclosed.
 

The seizure was significant for several reasons. It demonstrated that, despite Bitcoin’s decentralized nature and the anonymity it can provide, government agencies had the capability to track and seize digital assets in the context of illegal activities. It also signaled the seriousness with which the U.S. government viewed Bitcoin’s role in online black markets, such as the Silk Road, where Bitcoin was commonly used to purchase contraband.
 

The method by which the DEA seized the bitcoins was not publicly known, leading to speculation among Bitcoin enthusiasts. Theories suggested that the DEA either took control of a computer with an unencrypted wallet and transferred the bitcoins to a DEA-controlled wallet or set up a sting operation on the Silk Road, resulting in the individual transferring the bitcoins directly to the DEA.