This is what happened with Ross Ulbricht, right? The FBI seized more than 200K coins from his wallet and later they auctioned all those coins. So my guess is that it is possible for the courts to confiscate the coins.
Who auctioned the coins? The FBI? That is unethical, is it not? He probably worked on those coins but someone just auctioned it off when they took it away from him? Do you think there should be a way we can store coins in a virtual wallet that the court cannot confiscate?
Yes.. it was the FBI who auctioned his coins under the order from the courts. He had stored them in a virtual wallet, but the FBI agents were able to find the private key and transfer the coins. Anyway, those coins will be of little use for him. He is jailed for life without a chance of parole.