Illegal to sell yes as you're committing fraud (as you have no rights to sell the item but it doesn't mean it's been stolen) which then begs the question why ebay has them for sale, also there's the claims that it'll work which again makes it fraud..
Personally I'd love to know the answer as to what the full legality there is especially when the item isn't claimed back by VM (hence it's not always illegal or stolen) but I think that's a whole other thread one which would be full of arguments
