Allowing them to do what? The feds are saying they already have the keys, so either they are lying, or they already had the means to get the keys. Which would be the juicy part of the story.
I guess they have a quantum computer.
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> Chen personally maintained records of the wallet addresses and seed phrases associated with the private keys for each.
So it sounds like they have the seed phrases and thus the private keys.
[1] https://storage.courtlistener.com/recap/gov.uscourts.nyed.53...
If not, why wouldn't he just transfer the funds to a new seed?