Reminds me of all the US cops just seizing cash and forcing a lawsuit for it to be returned.

However, it's an inherent risk with crypto if the law requires all your income to be explicable. i.e.

>> The decision to arrest stated that I was receiving money from Coinbase, and therefore it is impossible to trace the source of funds

It's not clear if he knew who his counterparties were? (natural persons, not accounts)

I see the comment thread is going to be people just assuming guilt or innocence based on a cursory reading of this, which is going to be a mess.