By the way, isn't it illegal to take away someone's money without his permission?
All Coinbase have to say is that your coins triggered some secret algorithm which made them suspect theft, money laundering, darknet use, gambling (in some jurisdictions), or some other use your government dislikes, and not only does it become legal for them to seize your coins, but it becomes actively encouraged by your government.
I sometimes think about this and can't understand, why do governments push exchanges or any other services to gain KYC documents of their customers. Isn't it a national threat for governments that random exchanges collect KYC documents of their citizens? Especially when there are so many KYC data leak accidents.
An attacker with your details can ruin your life, commit fraud in your name, take out loans and credit in your name, but the government don't give a shit about any of that. That's not a national security threat, just a personal threat, and your government does not care about you. Plus the government can then tell that exchange to hand over all your financial activity which they can definitively link to your real identity. No government in the world would pass up on this kind of freely given mass surveillance.