It seems like Crypto can be taken away by the government. If the government orders you to give up your crypto they will just throw you in a cell until you comply. Or as it happening more and more often, a guy with a wrench persuades you to give it up.
They can't actually do that at a mass scale - they don't reliably know how much crypto any given person owns.
Ditto, if someone beats me with a wrench and I give them a password accessing $500 of crypto, what % of my stash have they just claimed? Do they stop or continue with the wrenching? What is the stopping condition here?