There's a link above to the story. I have heard of a few instances now of police auctioning off BTC from the proceeds of crime. I don't know that they'd be going that cheap though as just last month Koreans were paying 200$ - 500$ dollars above the price paid in the west on the Korean exchanges, so the normal price would be a nice discount for them. I saw a guy making 20000$ /day on the abitrage.