"If I hand you find a $5 bill, you can never trace that back to me, where if I were to transfer you money through my wallet, that's always linked back to my wallet ID, which if I went through a regulated exchange, has all of my Identification" As they say

Very simple example to explain why Crypto is much easier to track than fiat

If I hand you find a $5 bill, you can never trace that back to me, where if I were to transfer you money through my wallet, that's always linked back to my wallet ID, which if I went through a regulated exchange, has all of my CIP (Customer Identification Program) information," explained Felix.

The benefits of having a transaction on publicly distributed ledger

a single tip in the cryptocurrency market can, within hours, uncover a network of wallet addresses involved in ransomware fraud and money laundering, while a similar tip relating to a traditional bank wire could take several months to reach a similar level of visibility into a criminal network and its money laundering.

Monero and other privacy focused tokens are not much of help

While there are privacy tokens like monero, dash, and zcash, which have additional anonymity built into them, they tend not to be as liquid as other tokens, since many regulated exchanges have chosen not to list them due to regulatory concerns.

There is also the question of what to do once you have the crypto in hand. Right now there is not many things Russian govt buy even if they would use Crypto

It's hard to buy stuff with cryptocurrency, especially big stuff," Delston tells CNBC. He says that he doesn't know of any major electronics companies, food exporters, or spare parts manufacturers that accept cryptocurrency as payment, which he notes are "all the kinds of things that a country like Russia would need, because it doesn't produce it on its own

This truth is the first casuality of war, buried under pile of misinformation.

There is constant news cycle and a false narrative on social media to mislead people that Crypto is going to help Russia, so far Crypto is proven to be of so much help to Ukraine rather than Russia.Ukraine already got 0.75% in Crypto donations of $6 bn Aid American Govt is still debating about.

Govt is trying to put restrictions on Crypto by using this narrative while reality is quite opposite.

Source : https://www.cnbc.com/2022/03/02/bitcoin-sanctions-could-be-next-as-doj-unveils-crypto-crackdown-plans.html