[vmception]

These are bad assumptions about what options and interests and motives that attackers have.

Laundering is very easy with cryptocurrency. Despite the transparency on chain, how can anyone distuingish between someone buying a meme coin earlier and cashing out at 80,000% gains, versus someone with two accounts and bought a meme coin with clean money (account 1) and then pumped that meme coin 80,000% with their dirty money (accounts 2 through n) coming from different addresses. The dirty money accounts are now saddled with the meme coin, and the clean money accounts as well as yours and every other fomo trader's account that sold now has the more liquid cryptocurrency. For all reporting purposes, everyone has clean money and simply was a good trader. No investigator or government is proposing that traders are liable for determining who they traded against when its onchain or in an offchain exchange.

Secondly, not everyone wants fiat currency. The attackers can invest in other cryptos and make any founder or fund popular and highly revered. They can acquire goods and services and access with the crypto itself. They aren't sitting there trying to figure out how they can buy multimillion dollar houses and yachts, as its not a priority, but if they do want a lot of fiat its always available.

[swensel]

I do think blockchain analysis will get more advanced over time and people who think they are anonymous now may have a rude awakening years down the line, but from what I can tell, you know crypto better than I do.

IMO, if folks wants privacy now they should actually use privacy focused crypto, but I also think the public nature of crypto is one of the interesting parts of it. I know there are privacy diehards and I can understand why, but I'm more interested about the technology in general.

[vmception]

yeah private cryptos like the Secret Network, Monero, or Tornado.cash contract on the Ethereum network all have a way for the user to provide audits. so what you find interesting about the technology is still available or even more available. Secret Network offloads necessary state information into Intel SGX chips that all the validators have. Tornado.cash generates state information client side and offloads it all client side and must be saved by the user, for now. Monero is much more complicated.

ultimately the only thing changing is the state's ability to flag electronic transactions, as there are no financial intermediaries for them to deputize. they didn't have that ability in the cash based system, and they temporarily got used to it in the electronic one. This is just a reversion to the mean.