Crypto doesn’t care wether or not the transaction was for good or evil. It’s Switzerland, it’s neutral, and there really only one goal - to sidestep human control.
If a transaction was successful, it’s done its job.
Because of human nature fraud, theft, errors, disputes over assets etc. that go along with money whatever its form need to be properly dispositioned too. A block chain has no answer for that. And without dispute resolution methods the system will die or merely attract the underside or 1-off users of society.
Second, an automatic no to power is simplistic so as to distort solutions. Power is fine provided it's not corrupt and accountable. Getting that and keeping it is a hard problem, but there's no end-run either.
Finally, how many examples of frauds, thefts N must occur before crypto is associated with fraud, theft? That N was long ago surpassed.
That depends on how much resources said government can extract from the environment. Either by taking or by providing value in exchange.
One can imagine a level of technological advancement that makes violence impossible and trade unnecessary. Poof, no government.
Different people may be on top, with different aims (...arguable, but let's pretend.)
But there will always be a government of some sort making the big decisions for the benefit of its ruling clique.