TL-DR:
Someone made a fraudulent report with the authorities against K7, and the cops confiscated all his computers and drives with the assets he needs to build us MNM.
The cops are taking their sweet f'ing time checking the drives.
(Normally a forensic copy would be made and the assets returned so a company can keep running, but apparently they don't consider K7's business a legitimate company...)
The fact he's still free, and working on MNF and MNM regardless, shows that there is no direct evidence that warrants an arrest, so this all sucks balls!