Oh man . . that's got to be giving many people some massive anxiety. I don't think that Coinbase would actually steal anyone's crypto . . . but, it is best to take precautions. Moving amounts to a hardware wallet is probably the best thing someone could do to prevent this sort of thing from happening.
Some other wallets are good too, basically any that give you ultimate control over your coins, namely . . your private keys.
I don't have any doubts that the accounts will be reactivated soon. And if I were one of the people affected, I would immediately move my coins from Coinbase to a more secure and safe place.
https://www.amazon.com/Ledger-Nano-Cryptocurrency-hardware-wallet/dp/B01J66NF46
I don't see how a state could lock people out of Coinbase or any other wallet sites?
It appears that his article is citing something that happened last year. This isn't something new. Check it out. From June 24 . . of last year.
https://support.coinbase.com/customer/portal/articles/1999937-coinbase-accounts---wyoming
Great catch! Excellent.
:)