That upplays the financial incentives and downplays the psychological incentives. Cops seize stuff not only to have the money or shiny stuff, but also for the rare trill of punishing "bad people". In their job it is extremely rare to get the "job accomplished" endorphins, they see too many "bad people" (either real criminals or perceived as so by the cop) go free. So they create scenarios in their head about how the person is a criminal and then get the immediate endorphins for punishing the "criminal", restoring cosmic balance to their world. It is the old "do action -> get endorphins" mechanism, and if allowed cops will continue doing it even if you remove the direct monetary incentive.
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