Many people say the government is not interested in cryptocurrency. Many people think the government has prohibit
crypto to protect investors from risks. Maybe in your country, that's true. But in some countries, especially developing countries, the government just wants to rob your assets. They rob publicly, lawfully and as much as possible. they are really bandits.I'm not afraid what they do. Because we have many ways to fight them. But this world is not as simple as you think.They can kill you if you are demonstrating.
You can ask any vietnamese that : Do you support your government ? I bet 99% answer is never. 1% remaining I'm sure they are goverment employee or their family.

I am not an avid supporter of the current government nor against on it. Currently my country doesn't have an issue on stealing your asset or crypto asset by the government. I think that will happened if you do not secure your private keys well. Crypto isn't regulated in our country yet but it's use are not restricted either. So I think yours is an isolated case.