According to docs, obtained by TMZ, prosecutors are going after Martin's assets - totaling almost $7.4 million - to pay down what he owes in restitution after getting convicted of defrauding investors.
Prosecutors said Friday Shkreli should be forced to forfeit $7.4 million, which could include $5 million in bail money and the album "Once Upon a Time in Shaolin".
Because of freaky threats against Hillary Clinton, posted to Facebook after his conviction, Shkreli has been awaiting his sentencing date in the custody of Brooklyn's Metropolitan Detention Center.
Federal prosecutors want Martin Shkreli to give up his Wu Tang Clan album. Along with the disk set, which he bought two years ago for $2 million from the celebrated NY hip-hop group, the government said it may also seek a Picasso painting he owns, his Enigma machine from World War II, and his interest in Turing Pharmaceuticals AG.
After he was convicted, Shkreli put the Wu Tang Clan album - called "Once Upon a Time in Shaolin" - up for auction on eBay.More news: Crude oil futures decline on overseas leads
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They're also set to take a Picasso painting, an Enigma machine, $5 million in cash (from his E-Trade account), and his shares of Turing Pharmaceuticals.
Shkreli previously played cuts from both LPs while live-streaming shortly after his own conviction. It had amassed bids of more than $1 million before Shkreli was remanded into custody in September for offering to pay his Facebook followers to grab Hillary Clinton's hair.
"We will vigorously oppose the government motion", said Shkreli's lawyer Ben Brafman in an email to CNNMoney. Shkreli later apologized and said he was joking.
"Our position is clear", Brafman said in a statement Friday.
Shkreli is now in jail in Brooklyn and is scheduled to be sentenced on January 16, 2018.