But here we're talking about exchanges. Resistance to government censorship/control only applies to on-chain activity, not centralized custodians.

Most of the custodians work very hard to side step regulation and enable scams, albeit not necessarily openly on the second part, and are enabled by the on-chain primitives.

Pretty hard to avoid gov’t oversight/regulation when a USD Wire and ACH goes through the fed, for instance.

Easier when it goes through a blockchain which they can’t control.

Which is why a lot of exchanges (and all the sketchy ones) use things like Tether and stablecoins, and avoid US banks.