[lmm]

> Also what will the government do with these assets? Hoard them forever? Or eventually sell them back into the market. I can imagine govt employees receiving kick backs for seizing assets this way and selling them to their friend.

Presumably the government would auction them (as is done with seized proceeds of crime etc.). So there is no way to hand them off to a friend for a below-market price, and no way to profitably kickback.

[sukilot]

Auctions are already used today as a way for government and unethical entities to steal from the public. This is an epidemic in civil forfeiture for alleged crimes, and in property tax seizures for cash poor-homeowners.

[lmm]

The problem in those scenarios isn't the auction, it's the seizure without compensation.