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If he doesn't have a copy of the file, then even if the cops can't access it, semantically they could be said to have seized them?

Sure, ok, so they have an encrypted version of the private key!?

From the Wiki:

> The wallet.dat file is located in the Bitcoin data directory and may be encrypted with a password.

I guess they have the encrypted wallet.dat, but not the password for decrypting it.

Obviously it has been seized. They put it in the /police/property/seized dir and therefore it is the government's!

More likely C:\Users\OfficerDibble\Desktop\

If you have a paper wallet or memorized it, that file doesn't really matter though. Nothing was seized other than encrypted data.