Selling a bugged phone to a known criminal is likely fine (cite: The Wire).
But is it acceptable to sell a bugged phone to unknown/unidentified/random people and then use the phone's communications to determine if the owner is a crook and the owner's identity? The sole basis of suspicions seems to be "bought phone", or maybe "bought phone using bitcoin", or even "bought phone on TOR using bitcoin".
It will be interesting to see how many of these cases hold up in court.