Amazing, this means the US has inadvertently recognized the value of bitcoins and decided they want in the on the money! Or rather they want the USD value it holds.

If a government agency is allowed to sell recovered coins at auction will a court case of the future be able to use this to make crypto's legitimate securities despite not being a well defined organization?

In addition, how would this affect the price of bitcoin and how much per coin do you think auctioneers will pay? Above or below market price? The people able to access the auction clearly are required to have a significant amount of USD to participate thus increasing the 'whales' involved in crypto!