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New York state tax officials have already seized and auctioned off a rare Nazi encryption machine and three valuable historical documents owned by convicted fraudster Martin Shkreli, even as the jailed former pharmaceutical executive fights efforts by federal prosecutors to seize his assets.

Shkreli's Enigma code machine, which was used by Germany during World War II to send secret messages, was seized last May and sold for $65,000 by the Sotheby's auction house, a spokesman for the state Department of Taxation and Finance told CNBC on Friday.

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