Most will cave when claims are levied. Most have not thought through what it means to have a broke sovereign knocking on your door.

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Discussion

Can people be forced to give keys? Or just threatened with prison and fines?

The latter. A proper self custody setup makes it impossible to seize Bitcoin.

Keep in mind that the gold 6102 did not force seize anyone's gold; it was an edict that NPCs simply complied with en masse. Fear is a hell of a thing.