Ahhhh, this makes sense. Coinbase is in San Francisco (though their servers would be cloud based but cloud vendors are in California too). And Kraken has the US office there. So the FUD held by crypto users after the FBI news should dissipate - crypto technology at its base is still secure between commercial transactions and can be a bank replacement. So that role has not been diminished.

But this does illustrate a vulnerability, that crypto security can mean nothing if the government wants to get someone, and goes under the wall.