Confiscation is nature's way of saying "Not your keys, not your coins." And okay, sure, it's the government, so they have guns. So more like,"Not your timelocked keys, not your coins." Yes sir Mr. Policeman sir, I'll give you my corn, as soon as my key works in :checks watch: 5 years.

And surely people can get more creative about making that even more difficult for the state to handle. Especially with some sort of automated key rotation.Give 'em a key with a descriptor that'll be good IF they can use it right when the blockheight is reached, before your automated system rotates out the key.

Not that I'm normally one to trust too much automation when it comes to key management...but the point is, there's a LOT of opportunities, and most confiscated coins are just those that people got lazy about and left on an exchange.