In a functioning justice system the government might be able to place a temporary hold on the money, but would need to promptly return it when declining to press charges or on an acquittal. Literal theft.

A functioning justice system in a free country has no legitimate reason to seize property without any prior suspicion of wrongdoing and an order from a court.

A temporary hold like that only seems just to me in a case where someone had been charged with a crime and the money is alleged too be evidence or proceeds of that crime. Civil forfeiture is a way for the government to enforce criminal laws with a lower standard of proof and fewer protections for the accused. That's a bad thing.

It's called Civil Asset Forfeiture (gov euphemism for said literal theft).

I believe John Oliver did a piece on it when he first joined HBO.