Given that if the government steals coins, that means Bitcoin's legitimation, which is a win in itself.
Anyways, stolen coins are still valid coins because...they're just coins, such as stolen gold bars are still gold bars.

The fact that a lot of coins are sitting in one's priv keys, being the keys of a government or an individual, is somehow a natural evolution of how capital works. Bitcoin is not a Maoist dream in which every user holds the same amount of coins...so we must accept the existence of big coin stacks, like possibly a government's stack.