Personally I don't think the FEDs should have the right to auction this off.. I think that the future system needs a way to FLAG coins that are obtained by nefariouse means, and those coins should be put back into the block reward system .. Thats just my opinion .
IMO that's a ridiculous proposition. Who's going to be the "governing" body on what constitutes coins obtained by nefarious means, and how do you guarantee that the holder of the coins was the one who perpetrated the nefarious act?