As franky1 had stated already, since it's an auction sales, they make it available for everyone to show interest and make offer and the highest bidders go with the offer deal, but to me isn't this inappropriate as well, for them to seize some worth assets of currency from some set of people and yet sell them out to others, how are we sure they aren't making the offer for themselves, why not selling into the bitcoin network been distributed to buyers over the network across, then another thing to ask is what they use these funds for after the auction, back to their pause or back to the society, are there past records to serve as evidence on the appropriate utilization of these funds.
This auction goes the same for every seized item by the government which may be property or fiat money from laundering or whatever so its bitcoin they seized is sold too so the government can use it for funding themselves on anything you may not like it but that's what the law says and if there is any inside job going in that auction then the dirt will go to the government which they may not want it so I assume the auctions are fair but laws but ethically we can't speak anything.