So you believe that all the public mixers are compromised? It's certainly possible, but even so, they clearly aren't publicly compromised, and as such, I'd argue that tracking down large amounts of money moved conventionally is easier than tracking down large amounts of money through the blockchain, as last I read, traditionally, btc was sent through mixers quite often.
If a person isn't linked to KYC in any way and the coins are anonyously owned, then it's a bit harder, but as BTC becomes more mainstream it becomes increasingly difficult to prevent most transactions from touching KYC-regulated accounts.
As a borderline anarchist I'm not arguing this is a great thing, but it nonetheless offers a much more efficient path to enforcing money laundering laws.
FWIW I suspect some are compromised. Also, mixing adds cost, and so even if money laundering happens but is heavily taxed by this additional cost there is some utility to the blockchain based system.
> The crypto currency space is currently so fraught with fraud and crime
The lack of KYC requirements has led to some criminals using cryptocurrencies, but BTC is fully public and so money laundering, counterfeiting, and tax evasion both go away when we move to a public blockchain.
Those three crimes are all so much bigger and more costly to society than the petty crime that has fled KYC to use the blockchain that I think the truth is the opposite of your insinuation.