The fact that you seem to be so brain-boggled about this is... it's just that a lot of very smart people have been warning for years that crypto-currencies are going to run into trouble. That the things they were building were simply parallel (with new names DAO etc) to the global financial system and that previous system has all kinds of controls and regulations that crypto lacked. That if crypto didn't get their shit straight there were going to be some very serious people showing up on their doorsteps.
But crypto-bros will be crypto-bros, wether they are the minnows hoping against hope that they can somehow move from greater fools to slightly less foolish or the sharks grifting all the minnows for every penny they have.. just kept living in denial or .. selling denial in the case of the sharks.. and now here we are.
It turns out that when you ask the global financial systems what they call a service that does what a mixer does, they reply 'a money laundering operation operating in plain sight'.