Goverment Hacking Bitcoin Most of the bitcoin community is aware that the U.S. Government "seized" 2 million USD worth of bitcoins at the times current exchange rates. How would the U.S. go about using these. Generally with seized property they set up auctions, but how would that occur.
Seized items that are not of obvious benefit to the thief eventually get sold at public auction. If they fall into a process that doesn't understand the technology or there are auctioneer agreements then it will be a traditional auction. Value is not likely to be understated or undersold as this will be a very marketable item to advertise.

Stolen goods are also used to attempt interdiction. The government would use the coins in sting operations and in attempts to undermine confidence.