Usually LARPers are conscious that they don't have magic or any sword skills. I'm pretty sure the person who you respond too really think what he wrote.
Seems they were having trouble "taking it away by the justice system."
For the same reason government across the world have pressured or banned exchangers of monero.
Crypto is surrounded by vast amounts of misinformation, misdirection, or misunderstanding. So you get these myths and generalization propagated through lack of education. "I heard crypto is completely anonymous", "I heard crypto can't be taken away from you". Then someone gets tricked out of their crypto, or uses BTC to commit some crime and gets a quick reality check.
From a black and white viewpoint the possibilities are the same but the practicality is a bit different (then realize with crypto the hole might only exist in your mind). Maybe the government has control over your body but there is some victory in not letting them have your assets even if they take your life and without having to destroy the underlying value.
Personally I think a cleaner distinction is bearer assets vs titled assets. Both can be taken but bearer assets can be made impractically difficult to seize, especially against the masses at once, whereas titled assets (like bank accounts and deeds) can be taken by the government trivially (ex: in US, IRS can freeze without even a warrant) and at mass scale quickly.
The mere fact you've delayed the use of money doesn't mean the value is gone. I can't do dick with my money until I've at least logged into amazon or driven to the local walmart, yet it's value remains, of course the longer I have to wait to spend it the worse it is. The time value of money means its less valuable to me if I'm locked up for decades before I can get it, but even in jail indefinitely I could secretly reveal it to a friend who could share the money to get some nice ramen packets or cigarettes.
If we take the creative approach, then according to the equivalence of inertial reference frames in the principle of relativity, taking you away from the money is exactly the same as taking the money away from you. Taking the money from you don't imply someone else must have it, just that you don't. Someone could take your HW crypto wallet even if they can't access the money, happens a lot with wallets confiscated by the government.
But ok, the original goalposts were set at the difference between stablecoins and fiat with regards to how easily they can be taken away from you. There is no difference for all practical purposes in any non-hyperbolic situation.
It's not the same. That's why governments and the FATF at great cost and effort spent decades snuffing out anonymous bank accounts and bearer assets, they didn't do it for the lolz. If you take the person away from the money then any surviving persons can escape and reclaim the money. The person in jail can utter the code/location to a comrade, maybe even before they go to jail. In a western country, the person might even be released from contempt after a time (decades+ contempt sentences are so rare they make headlines) and if criminally charged they will often be out on bond where they can utter the location/codes to others. It's a completely different animal than the government seizing the actual asset and putting it in its vault guarded by armies of police or military as non-human seizure.
>There is no difference for all practical purposes
Only if you ignore the practical differences.
You'd think that it would be easier to just name a few but here we are discussing burying a bitcoin seed under a grave in Timbuktu.