It was a Red Eye missile, predecessor to the Stinger (Red Eye 2). Entirely legal to own, unreloadable, and inert. It was auctioned off by the military. https://www.buymilsurp.com/us-xm41e2-redeye...ert-p-7720.html

One of my buddies went down, bought 13 guns. Snagged an older Winchester lever action .22, and a number of reasonable shooters. For his $1,300 investment, he'll probably clear about $3,000-$4,000 after recouping his investment, assuming the lowest blue book value for each firearm.