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.
Additionally, there was mention of Shkreli's copy of what may be "Tha Carter V", the lost double-album from rap legend Lil Wayne.
Because of weird 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.
Martin Shkreli may have spun his last track on a one-of-a-kind album by the Wu-Tang Clan. He was found not guilty on five other counts.
Shkreli paid about $2 million for the album in 2015.
Shkreli's interest in Daraprim maker Turing Pharmaceuticals should also be forfeited, as should the $5 million put up as bond in an E-Trade brokerage account, according to the letter.
Long before his conviction, Shkreli's purchase of the album sparked outrage among music fans.
Shkreli's lawyer said on Friday that his client would fight the government's demand. A listing for the album was posted on eBay and allegedly sold for $1 million in September - while Shkreli was in prison - though the buyer was never identified.
TMZ spoke to his attorney, Ben Brafman, who told them, "Our position is clear. Accordingly, forfeiture of any assets is not an appropriate remedy", he said in a statement. Shkreli later apologized and said he was joking. He is being held in a federal lockup in Brooklyn, New York, and is scheduled to be sentenced next month.
Shkreli's trial posed an unusual obstacle for prosecutors in that investors who were defrauded did not lose money.