This becomes obvious when you consider that the government auctions the coins they seize. They either have to give the keys to the buyer or create a new transac

This becomes obvious when you consider that the government auctions the coins they seize. They either have to give the keys to the buyer or create a new transaction on the chain. The interesting thing in this whole conversation is assuming the person holding the key is the custodian of the funds, when it is more the key itself that is the custodian. The keys hold the funds, the person holding the keys can change but that is entirely outside the system but so is getting robbed on the side of the street of the cash in your pocket.