However the kim dotcom issue shows that even being located in another country, and the claim that you're "breaking the law" being very flimsy, is not sufficient protection in many cases.
It will be interesting to see if foreign domain names start getting seized by US officials.
(Most of these are rhetorical, and probably don't have very pleasant answers.)
[Edit] Come to think of it, I'm kind of pissed the site owners didn't just laugh at the seizure and immediately start up a new site, purely on principle. URLs are basically irrelevant these days, and ICE seizing them on the grounds that they're "tied to illegal activity" that adds up to copyright infringement at best sounds like a lot of dick-swinging by ridiculous executives in an industry well past its expiration date. They should be treated with appropriate insolence.
Or it could go down like in the UK and the ISPs could be ordered not to route traffic to/from the website - eg http://www.theinquirer.net/inquirer/news/2172223/virgin-medi...