Civil asset forfeiture is purely evil. That said, the whole point of bitcoin is P2P and permissionless. They can call my coins guilty all they want, but they can’t actually seize them without my consent.
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They could say "Give us the keys or you ll rot in jail." Your choice.
Actually this would indeed affect almost every fucking UTXO, even from exchanges, because the majority of tx could be linked on its way from the coinbase to your wallet to a "crime".
If an exchange by chance ever accepted tainted coins, ALL coinjoins out of that tx will be considered illegal.
This would be a nuke.