Well, OP, I have just a few questions to ask if you'd mind. In your country, if there are situations like the one you just described, and upon the police investigations, they discovered that the convicts, through illegal means, had acquired the coins they had in their wallets. What do they (the policemen) do with the funds?
If you are unjustly harassed or detained by a security operative, you can always seek redress in court. There are cases where individuals sue the police force and these corrupt security operatives are punished severely for such misdoings. The court sometimes compensates the sufferer for this injustice.
Most of these security personnel who harass people are just corrupt and want to steal from the people. The police don't have the right to seize or forcefully access citizens' phones without going through due process. In most cases when they discover that the funds a legitimate they still force citizens to give them bribes before they are released or set free.
What i experience last night made me to raised this topic so we can learn to secure our investment or be very mindful while moving with our smartphone at night it's very risky to lose one valuable asset at this point.
As much as possible I maintain privacy. I don't want people to know that I own crypto because it can be misconceived. Unenlightened security agents see crypto owners as criminals, to avoid unwanted questioning, my phones are void of anything which will link me to crypto. My crypto activities are limited to my room because it saves me from unnecessary attacks and embarrassment.