What do you think the government does with any bitcoin it seizes?

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most are sold.

this heist never transpired, the data was apparently held off-location.

Can you post a link to any of that? It would be interesting to purchase a bitcoin equivalent of a foreclosure.

link to the story or about government selling bitcoin?

Government selling bitcoin.

appears The Fed sells the locally confiscated bitcoin, at least in Utah

https://kutv.com/news/local/feds-to-auction-bitcoins-including-some-seized-in-utah