No, that’s a commonly held misconception likely tied to the fact that it was being used by people in conjunction with Silk Road. The public ledger system ties history to the transactions so you can trace the flow back in time. Law enforcement officials probably love that aspect.

Good old fashioned cash is much better for criminal activity.

A crypto like Zcash (another fairly large crypto) that utilizes zk snarks to encrypt transactions and then decouple coins from their history would be much better suited for illegal transactions.