It's scary to see how clueless mainstream journalists are, as soon as they touch a subject we're mildly knowledgeable about. Imagine the amount of BS they spread when talking about complex stuff such as macro-economics...
Practically speaking I'm not sure it really matters. If he's unable to do anything with the backups himself until they can 'convince' him to give them the password, they will still probably eventually get the money. If someone else starts spending from that wallet address they'll probably be tracked down and charged with conspiracy or obstruction of some sort.
Basically as long as the money can't be spent for whatever reason it is effectively seized.
Surely you can make copies of your wallet and keep them in various secure locations?