What did i just witness?

Of course, each of us have their own opinion of what is going on here. But in reality, the cameras did not catch anything that was illegal, in and of itself. The exchange of money is not illegal. Giving a ride to someone is not illegal. I am not sure if I actually observed an exchange of money. It appears that once the cam had the guy in the frame, he was already holding the cash.

Unless the police rolled up and started asking questions, we really have only opinions on what was going on. But I think that what @fergenheimer stated is probably pretty close to what was going on.

Even if they did nothing wrong and were legally there, the police could have taken the money and not charge them with any crime. Civil Asset Forfeiture anyone?
 
Civil Asset Forfeiture anyone?
Yes they could. CAF is the most blatant abuse of power that was ever put on the books. No charges, no proof, just you have cash, I am going to take it. Legalized robbery by the government.