What makes you think funds in that address are confiscated?
The press release mentioned only Ether, Litecoin and Dash.
The FIOD website mentions that they were assisted by the zeroShadow cybersecurity firm. A member of that organization, tanuki42, made the claim on Twitter that this was the address where the seized funds were consolidated at.
https://x.com/tanuki42_/status/1920755195060875353