I am not so familiar about laws governing funds (in this case Bitcoin) that the government confiscated but using common sense I think those funds have to be kept somewhere and not be utilized until there is already a court order allowing its release or use (in this matter). Well, while we are in the Bitcoin industry, certainly we are supporting of any drive that can catch people who are using Bitcoin for their own evil intentions. We don't have a place for perverts who are using their money to lure children into satisfying their lust and desire.
Child pornography has no place in the Bitcoin community and though we could not stop anyone to use the currency, we have to support the police who are doing the job of tracking these people. of course, it is not the fault of Bitcoin why we have this people because they can be using the dollar too in transacting their illegal business. It is time to push these people out of the system and because this is not a one-fight fight the police should make sure to continue on doing their job catching them.