There is a reason the IRS has not put up a million dollar bounty about BTC tracing but XMR and all darknets use it.
Perhaps I am missing your argument.
not your keys not your bitcoin
As soon as I start to look for information, I will be drowned in automated criminal attacks trying to trick me into create a vulnerability in my setup process.
Imho Bitcoins being stolen is not at all Bitcoin being "bent, broken, or subverted", it's just a natural consequence of the design goals. If an unrelated third party could block my bitcoins by accusing me of terrorism that would be subverting the system, and such things have not happened to bitcoin-core (but have happened in other parts of the bitcoin ecosystem)
The issue that is often raised with Bitcoins and other cryptocurrencies is that not even the law can help you in case of theft. Now, it's true that the police wouldn't bother helping me recover a wallet with 100€ into it, but things change if someone steals millions or even billions like in this case.
I find something odd about this, because it seems to contradict some of what I understand of the arguments for bitcoin.
However, there is merit to your point, and if something is working as intended, then nothing was attacked in the first place.
I can run an exact copy of the bitcoin code in a fork with a new genesis block, and no one would give me even an apple for all my eru-coins.
One that you freshly mined seems fairly pristine.
On a tangent:
Funnily the Algerian law they quote would not actually apply to bitcoin (but I doubt Algerian judges would see it that way):
> Art. 117. — The purchase, sale, use, and holding of so-called virtual currency is prohibited. Virtual currency is that used by internet users via the web.
Bitcoins have their own protocol independent of the world wide web.
> It is characterized by the absence of physical support such as coins, notes, payments by cheque or credit card.
People have made physical bitcoin coins, and there's plenty of payment cards etc floating around that you can use with bitcoins.
Compare with eg the Brazilian Plano Real which was sort of a virtual currency for quite a while, but I doubt the Algerian law was meant to outlaw that one.