This seems mixed up, kind of misleading.
The decentralization of Bitcoin doesn't have anything to do with the ownership and control of coins. Bitcoin, the system, is run without a central authority or server or headquarter. Bitcoin, the coin, is fully owned and controlled by whoever holds the key. Confiscation of the latter, of the currency, doesn't give any power or authority over a decentralized system. What's under full control are only the coins.
For me, seized coins that are gained from fraudulent means should be fully returned to their rightful owners, the victims.
People always messed up things just because of these imaginary theories about Bitcoin having enough negativity, which did not stop him from pursuing him in the long term. He always needs to understand it's just a currency or unit of exchange, nothing else. People faced too many problems during the use of fiat, but they never gave any accusation because it's just a tool or currency that is used and then faced consequences. The same applies to Bitcoin.
It's never given anything extra to anyone because giving back bitcoins to victims has never been easy because few things always work against this. People using exchanges or other platforms are never able to provide proof of their funds easily, and it's better to give back money to victims because they are facing problems in case they have nothing back.