In the first-ever case of its kind,
it is in no way the "first" case where the government seizes bitcoins from someone specially if that someone is a criminal. there has been lots of cases before this, Silk Road for the most popular and old example where FBI seized somewhere around $100 million in total if not more from those involved in it.
Yeah but in all that scenario, the government took and confiscated the bitcoins and cryptos but with this case, they ae being transferred back to their original owners since it was stolen from them in the first place. So it's still a landmark case with the judge deeming crytpos as an asset.