I agree, the legal system doesn't do well when it comes to recovering cash from entities that can hide it. You can get a legal judgment against a company, but if it's fly-by-night, it winds up being a worthless piece of paper, and can become very difficult to recover.

It's much harder to hide 500,000 dollars in small bills than it is to hide Bitcoin.

Law enforcement has well-developed capabilities to surreptitiously follow the movement of people and objects through the physical world and wield whatever force necessary to sieze them where desired.

The law does actually have ways of extracting cash from people even when it can't locate the cash in question. It's harder, and less effective, but overall it works more than it doesn't.

Yes, but that works the same for Bitcoin.

Looks like they have other ways of handling it with Bitcoin: https://www.usmarshals.gov/assets/2016/bitcoinauction/index....

It could work the same for Bitcoin. It actually works better with Bitcoin as there actually is a complete transaction log.

However, the law has frequently decided it can't treat Bitcoin like it treats cash, which has created problems...

Hiding a wallet is much easier. You can even have several copies of it, so that you can hide it so well that you do not even care if you lose it.

Bitcoin moves much faster and much further that cash though.