Engadget received the photos from the new owner who is looking to sell the device.
Right now we don't have a ton of info on the device in question, but we can tell you that it apparently has a front facing camera (!), 80GB of storage (weird, right?), and isn't booting at this point (though it was previously, and running an OS that was decidedly new). It's not clear if this is definitely a production model, or just a prototype that found its way into the world, but it's certainly a compelling design, no matter how you look at it.
We'll post more details as they become available!
*Update: It seems this device has been spotted before. According to @TUDream a chinese tweeter uploaded similar photos some time ago.
*Update x2: Appleferas is saying the images are a Japanese clone.
*Update x3: Engadget is now declaring these images the real deal and provides some evidence to back this up.
*Update x4: Appleferas now says their source was faking about it being fake.
*Update x5: John Gruber has heard that Apple really wants this device back!
*Update x6: Gizmodo has got the device in hand and declares it the real deal!