it could happen that cryptocurrency is used for money laundering from criminal proceeds, one of which is corruption. because the flow of funds in the crypto is very secret. perhaps in some countries that have worked with cryptocurrency can easily track the flow of funds. but if in a country that has not worked together I think it can be used for crime.

It is really possible for government official to use cryptos and invest their money from corruption into bitcoin and other alts, this one reason why some countries are not in favor in the idea of cryptos because it is decentralized and does not have a trail upon completing transactions. I think some are actually doing this stuff and maybe many government officials learn the idea of bitcoin investment and trading. I just hope this would not make bad reputation for crypto industry.

Bitcoin is only Pseudo anonymous, which basically means that the owner of the coins can be identified if they use those bitcoins in the incorrect manner. <re-using Bitcoin adresses>

Their problems start when they want to cash out to fiat currencies or when they are buying expensive assets. These companies have to deal with payment processors and third party services that has to adhere to KYC/AML regulations.

In the end, these people have to explain their income and expenditure, when they get audited. How do you explain the $500 000 car and the $1 000 000 house on a average government income?

The Police is not dumb, they have a cyber police to track all the transaction the corruptors made.
And also, god will lead the way for arrest the criminals

The Police isn't dumb, some policemen were. I've seen a lot of those though.
There are specialized agencies that can investigate these kind of matters but not all Countries have access to them.

A Country that is vulnerable to Graft and Corruption are the great "investors" of the Cryptocurrency market.
Where do you think those $400b came from? I'm positive that about 20-40% of it came from corrupt officials.

God, please, no talks about religion  

A lot of politicians in my country are already doing that. They are sending tax notices to common people who are investing heavily in crypto. But they are themselves involves in such practices. They are able to get away with all this only because they are doing it through fake profiles registered on various exchanges. For instance, suppose a politician has got 3 servants working for him. He will start investing in accounts registered with details of those servants so that he need not pay any taxes on that investment or explain that source of income.

The hard truth is major money involved in crypto currency would be black money and corrupted money . But even these moneys has to manage properly .Most of the corrupted politician in my country are least educated . There is high chance of getting cheated if they don’t have proper knowledge about bitcoin or crypto currency.

If the government is smart they can still trace the money but they cannot withdraw it unless the witness will tell that he/she is guilty on corrupting.

Yeah it is possible but they will get caught when they are converting their fiat into crypto because large amount of crypto cannot be bought through direc money so he need to use the bank account if he uses the bank account then his money will be recorded.And we also need to regulate the exchanges so all the transactions will be recorded if any big transaction then it will get caught.