For the curious, this 114k seizure represents a full 1% of all bitcoins that currently exist worldwide (0.7% of all bitcoins that will ever be produced). I'd wager the US government won't be releasing them or selling them back into circulation.
"Bitcoins are not illegal in and of themselves and have known legitimate uses."
(See 21(b)(v) of http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalCompl...)
Of course that's not a binding declaration, but it indicates some openness on the mattter. The agency holding it would surely like the $millions (or someday appreciated $billions) in law-enforcement toys it could buy, if liquidated. They routinely sell/spend other confiscations.