What happens when the thieves acquire the police? Who is going to police content, and for what purpose now? We already know that Facebook has profited tremendously from the freebooters.
"...but this isn't exactly right: The FBI also tracks property losses from larceny and theft, in addition to plain ol' burglary. If you add up all the property stolen in 2014, from burglary, theft, motor vehicle theft and other means, you arrive at roughly $12.3 billion, according to the FBI. That's more than double the federal asset forfeiture haul."
Furthermore, a big chunk of that 2014 number was Bernie Madoff, per your atricle.
And finally, a big chunk actually goes back to the victims of the crimes ultimately linked to the forfeiture, again per your article.
If you want content to be policed because policing content is a social good, make the government (the actual police) do it.
If you want content to be policed because it's profitable, the vertical integration of "thieves" and "police" lets you leverage synergies.