My question is; is this actually right? I think this assets are supposed to auction or sold off?
Why should it be sold? Literally, it is still the same. United States will still be the owner of the money they receive after selling the coins. Also bitcoin is money as fiat but it is better than fiat because it is an appreciative asset. That makes it different from fiat. In my opinion, it is good how United States use the bitcoin confiscated as reserves. But what I do not like about it is that United States still supposed to buy more bitcoin
and add it to the reserve.