Based on the TOS it will be confiscated
...
it's clearly stated that it will be confiscated...
Can you point me to the part in their TOS where that is written. I took a quick look and found only this:
Without prejudice to any other rights, if a User breaches in whole or in part any provision contained herein, Stake reserves the right to take such action as it sees fit, including terminating this Agreement or any other agreement in place with the User and/or taking legal action against such User.
https://stake.com/policies/termsAt least based on this information it's not clear that money can be confiscated. However, by saying they can take any action they see fit, the confiscation of funds is also one possibility.
Did you find something else in their TOS?