AndyA - 4:08 pm on Nov 30, 2010 (gmt 0)
The authority for the Department of Homeland Security seizing domain names comes from the Senate Bill 3804: "Combating Online Infringement and Counterfeits Act" (September 20, 2010) introduced by Vermont Democrat Senator Patrick Leahy.
Since when did legislation become law without being voted on by the House, Senate, or signed by the President? The bill you mentioned is dead. Sen. Wyden said he will prevent the bill from coming to the floor this session.
I think a quick perusal of the authorities granted to Homeland Security upon its creation will find many abuses to our civil liberties, rights, and privacy.
In keeping on topic, it would appear that the appropriate legal steps were taken regarding these domains, from what I've read.