Nothing obtained by civil forfeiture should ever benefit anyone, let alone any government office, most of all the police. I don’t know where it could go that wouldn’t be subject to abuse some how, it shouldn’t exist at all.
https://www.visir.is/g/202099179d (sorry, was unable to find a source in English, hopefully google translate does a decent job).
In this particular case, assistance from the Icelandic police was deemed crucial to shutting down a major Silk Road drug ring, and part of the Bitcoin funds confiscated by the FBI (355 million krona, or about $3M USD) was given to the Icelandic government. A special law then had to be approved in Parliament to enable that money to be ear-marked for cyber-crime defence.
I find it insane that funds confiscated by the police in the US can be used and spent by that police force as they seem fit. That money should clearly to into either a state of federal fund, to be re-distributed.
If it was spread out to decrease everyone's taxes for the year, people who "have nothing to hide" will celebrate anything that increases civil forfeitures. Give it to charity? Same problem.
It's just a terrible concept.
How you are ok with the action, but not the result is I think what separates us and The end do not justify the means come to mind here.
Personally I think if youre stealing someone's property regardless if it goes into distributed tax coffers that benefit the public doesn't make it ok.
You're also conflating criminal forfeiture with civil in your example.
In Europe it is after the judgement as part of it. So the tools used in crime might be taken away. A gun in armed robbery. Maybe getaway vehicle if it is used multiple times. Special tools used for breaking in.