Extortion is a common practice in the DoJ and law enforcement agencies. It is corrupt when the agents participate in a manner where they look to gain for some personal benefit.

The FBI could say, "rat on so and so and we will decrease your sentence by X, otherwise we will push for full sentence" and happens all the time.

But, if FBI said, "give us the password to Bitcoin wallet or you get decades in jail under retarded computer law" and the agent transfers Bitcoin to his offshore account, that is illegal.