I have another question, what do they confiscate cryptocurrencies for? Cryptocurrencies are not yet comparable to gold, gold is much more valuable, so comparing crypto to gold in this case is a bit lame. The entire crypto market cap is only one-tenth that of gold, and its growth is being held back by the government by simple lawsuits. So the hypothesis that the government will confiscate the cryptocurrency is not viable and can never happen.
I think the logic is that if you are a bad person who did something bad, and if it is mainly financial, then they seize it to make sure they can pay people back. So even if you didn't steal peoples crypto, even if you did a fiat crime, then they will seize your assets, this doesn't have to be just crypto, they will seize your house your cars your money and companies or any other investment like gold or stocks or anything like that.
This is why I believe that we are going to be something that matters the most. We need to be a lot more against this because it is not a liberal move, but at the same time this has helped criminals not escape justice easily, and paid a lot of victims back this way so I am not really too much against it.