Alleged crime. I thought the US had some presumption of innocence or something.
And that's pretty messed up. It's also messed up that being stuck with a public defender is messed up, but that's another issue. The concept of assuming guilt before trial with respect to your finances is obviously a violation of the spirit - if not the actual letter - of the Fifth Amendment.
First off, you can't just arrest anyone without going in front of a judge and getting an arrest warrant (unless of course a police officer has evidence you committed a crime). Second, they need to identify your assets and then prove that they are proceeds from illegal activities. Do they just say "all of it is"? Probably and the onus is on you to prove otherwise.