

EDIT: The following is only referring to the usage in common used language. The legal distinction is as pointed out by @geissi@feddit.de and freezing in legal terms is different from confiscation.
The factual control over that property is taken away from the owner. That is confiscation (in the common used language not in legal terms). For any physical property that term is used directly in that sense. The term “freezing” for bank accounts has established in that sector but it remains valid to speak of confiscation as the factual control over that asset is seized from the owner.(in the common used language not in legal terms) For that is is irrespective of whether the recognized ownership has changed. I.e. if a police officer takes all the money out of your wallet and puts it in a safe at the police station it still has been confiscated from you, even if he gives you a letter stating it is still your money. You are denied access to it, until some decision has been reached by someone.
The only legal distinction here is that the bank is a regulated private or in this case public entity that is legally seperate from the executive, whereas the police is a direct executive organ.





When i checked again the statement by the group has been updated, now using the term freezing in the bold part of the statement:
You are right that there could be a legal confusion around the term confiscation and the statement was updated probably to reflect the point you made about the legal meaning.
In the common usage both in English and German the term is broader what i argued for.
https://en.wikipedia.org/wiki/Confiscation