How do those banlists work? If they send a bunch of coins to innocent wallets, are those now completely tainted or are people tracking what percentage of coins in each wallet are "legitimate"?
I always figured the best way to take your filthy crypto lucre to an fiat is through NFTs. Mint something stupid and sell it to your banned wallet for a ridiculous price. If you just send it from one wallet to another there is no plausible deniability and that transaction will be tracked and scrutinized. Just like laundering fiat through fine art you have to have something that can be subjectively valued and sold.