I would say if the item is seized due to being stolen goods as long as you have proof of this you should be entitled to a refund for not as described (implication of clear title).
Back in the very early days of eBay when buyer and seller protection and even PayPal was non existent, I bought a laptop from a seller. It arrived damaged as packing was pretty poor. Broken screen. I powered it up and found a big message about it being owned by a school interstate. So being socially responsible I called them. Gave the serial number and yes stolen. Gave the sellers name and it was a student. I'd paid $400 for it (cheap for a laptop at the time but lots of money still) but knowing I was dealing with a 14 year old kid I sent a very scary very legal sounding message telling them the computer was broken and the authorities would be involved if they did not agree to take it back. Clearly wanting to avoid any entanglement with the police (knowing it was hot) they quickly refunded my purchase price and original postage and asked that I return it which I said I would. The school kindly offered to pay my return postage cost to get the machine back which was a 2 grand machine, so I sent it to them instead, stalling the seller.
I got word that he literally **bleep**ped his dacks when he got called into the office and was confronted with the sight of the laptop.
I got a good outcome with no loss to myself. With all the protection out there now I can't see the seller getting away with it.
