The wild part to me is that exchanges seem to be the easiest way to launder money. It's easy to track money in wallets until it hits an exchange and if that exchange is outside your jurisdiction...

Isn't that wild. That the formal trading place is easiest way to launder?

Also the 2nd largest exchange ftx was basically breaking all the finance laws we have, I think it's fair to say it's an industry wide problem.

Personally I wouldn't mind a huge government crackdown. People could still use distributed ledger technology but the whole crypto as money thing is just scams, fraud and illegal activity and doesn't seem to be serving society.