I believe being forced to hand over your passwords is still a murky gray area. But, even if it "protects" you, there's probably a chance that you may not get your device back for a long time.

Also, if you get your device back, especially if you had encrypted data on it, please don't just naively keep using the device. (You may be able to sell it to a security researcher!)

Yes, they did (and he gave it). They even asked him to write it on the computer so that they could continue to use the password when they took the laptop from him.