That sounds rather draconian. Is the American justice system really this bad?

I'm aware of the Kim dotcom case that was arguably supporting piracy and the operator knew he was skirting laws. So, I understand (but don't agree) with how the justice system is making an example of him by taking away the servers.

But, does the justice system really pull the nuclear option (take your property and keep it for years) when upon investigation all evidence points elsewhere?