The federal government is responsible for selling property taken from criminals, including cars, yachts and fine jewelry. But Bitcoin, a computer-driven virtual currency that exists entirely online, is neither fish nor fowl.

If the government dumped all the coins on the open exchanges where Bitcoins are bought and sold, it could significantly depress their price....

“Selling Bitcoin with its somewhat liquid market is not the same as auctioning off a 1998 Chevy with a couple of bullet holes in the driver’s door,” Steven Englander, a research analyst with Citigroup, wrote in a note on Wednesday....

The authorities are also concerned with Bitcoin’s potential to be used for illegal activity, and the agency screened potential bidders.