The claim is that location of the asset is literally impossible to prove short of having the only copy of the key on a drive in possession of the prosecution. An example crypto asset, in this case, perhaps one that is less than the threshold for this law, but used in court can be easily used to show that the asset either exists in multiple places at once, or nowhere at all, and can even exist, ephemerally, in the mind of someone or multiple people.
you could probably use CRISPR to literally trans-code it into base pairs and inject it into your genome, but the cost of synthesizing the oligonucleotide might be more than the wallet holds in some cases.