So what happens if they get a confiscation order for some bitcoin the day after they are sold to, let's say, a pension fund?
They'd confiscated the proceeds of the sale of those bitcoin, i.e. dollars, stock, art, whatever. The confiscation order is against the criminal to get at the proceeds of the crime. If a criminal gets $1 million in a suitcase for selling some drugs, and then gives me that $1 million in a suitcase to buy my house, then the criminal would surrender my house which has become the proceeds of that crime.
The only way I have to surrender the $1 million is if I was involved in a crime myself - i.e. they deliberately overpaid for the house because I was going to launder that money through a cash business, or I reported the sale for $500K and planned to avoid taxes on the other $500K.
Biting the hand that feeds IT
