US customs opens sealed and graded N64 game

Unfortunately for the receiver, anything can be opened by a customs agency. It’s just a risk with international transfer. Could have legally happened even if you went and picked it up yourself, though chances are less.

"sealed and graded"? Am I understanding this correctly... people buy video games still in the package and leave them in the package as collectibles like they do with toys?

Yes, these are items that are in limited supply that people would like to keep as memorable items. It makes a lot of sense, even if the market has been a bit inflated at times.

These collectibles have a high price tag for highly graded classic games that are in high-demand.

The biggest questions are the grading criteria, but that exists for most collectibles.

Just the other day I was thinking this would be a great way to smuggle contraband, but that assumes anyone outside the 'scene' knows what the container signifies.

Title correction: Based on the comments, it appears it was Canadian border customs, not US customs.

Thank you. Sorry about that.