> it began with an extra-legal demand
That's not what happened. The quote from FoxNews reporter was: "Then offers the man a way out: surrender his cash & no investigation"
This does not mean the officer was planning on pocketing the money personally. This likely still would have been considered a seizure under asset forfeiture.
I agree that it should be entirely legal to carry around hundreds of thousands in cash, but the reality is that it looks very suspicious for someone who's been previously convicted of a felony drug conviction carrying around hundreds of thousands in small bills.
Asset forfeiture is a mixed bag. You have to appear in court prove the money was not gained through illegal means. The fact that most asset forfeitures go uncontested is telling that a lot of them, IMO, are probably indeed drug money (this is obviously controversial).
It's important to remember that every state is different - as is the Fed gov't.
In any case, it is absolutely not "extra-legal". That's nonsense. Asset forfeiture is literally codified in almost every state.