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As far as legitimate paper trial from the original source is concerned, you have a point. What you fail to address is the consequence of once it is confiscated, what then?
Typically it is given to some authorised person for disposal since the Gov does not facilitate confiscated animals.
These include zoos, museums and even reptile dealers. I personally know one wholesale dealer that is regularly given confiscated shipments/animals by FWC.
At this point, when he sells these animals, are they illegal to own?
Is the paperwork that FWC gives him to claim them inappropriate?
Who's authority trumps who?
Can FWC legally give him authority to posses and then sell?
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