If your servers are hosted overseas, the FBI can probably ask local law enforcement (via some treaty) to seize everything.
An employee of mine once did some very stupid stuff from our corporate network and premises and the police was very reasonable about it.
The quote you give is about some log files from a server in Italy (and fails to detail whether or not they were handed over), we're talking about seizing an entire datacenter here including all the customers machines (plenty of which were government boxes). Hundreds of businesses were ruined on the say so of some junkie.
Disproportional doesn't even begin to describe it.