Laws will change.
Since the courts can no longer just whip the funds away people will be sent to prison until they cough up their private key.
It is good in two ways;-
1. If it is justified, it wont take too many "shower scenes" until the funds are returned.
2. If it is unjustified all hell will break out, it will be the new form of civil disobedience and the press will love it and people will listen.