I just saw a article out today about fiat money being 800:1 times more likely to be considered 'dirty' and used in black market

This is purely just hyping up their products, or otherwise trying to confuse people with regard to fungibility. No cryptocurrency is "provably clean" except for coinbase rewards that have never moved.

Their products work like antivirus software. All they can do is tag known/suspicious address clusters and associate taint to build a database of questionable outputs. Thus, they can flag outputs that are associated with illegal activity, but they certainly can't prove that every other output is "provably clean."

it is because when you are bombarded by articles about how bitcoin is being used by money launderers many people eventually start believing in it even if it really doesn't happen! it goes so deep that eventually those who started the lie believe it themselves too, which is why all these companies like what OP is talking about are being created to sell their services to those people pretending they are "finding" people and linking their transactions together.

We cannot actually track each and every paper money out there , we cannot expect the government to keep it all documented .
This is impossible.
That's why today's government is switching onto the online payment , and guess what ?
They are forgetting that Bitcoin is a part of this , that even this is a mode of online payment.
Therefore I do think that only if the government could support it could actually strengthen their international business relationships.

You say its impossible, but they would only need to recall all bank notes just like they do when changing to newer ones. The older ones are then considered legal tender for a time period after that, but I'm pretty sure that there is a deadline in which you should exchange that to a bank. If they wanted to document every transaction made, they could recall all bank notes, and move to something like the blockchain. It doesn't have to be Bitcoin, and they could make it their own as long as the transactions were all documented through something like the ledger, there would at least be a little more transparency in a pretty broken system.

Aside the fact they are trying to sell their service; they are kinda true about the provability of Bitcoin though.
I have heard about how a company called 'Chainalysis' help the FBI in identifying crypto addresses and wallets  that are linked to criminal mostly linked to Darknet.

The point is, it might be easy to trace the transaction of a stole wallet or Bitcoins but its very difficult to put a face to the criminal behind it. Or else someone who knows the hacker or criminal snitched.

Clean money or not, at the end of the day all merchants and consumer care about is if they can use that money to buy something or exchange it into something so I don't see the point of this plan of theirs. Sure, you can say that one money is tainted with blood and/or illegal doings, but the mere fact that it stays as money, even if it's involved in criminal cases doesn't make it worth less than what it is before. I applaud Ciphertrace for doing something to trace scammers and nefarious people using cryptos for crimes, but again why segregate clean money from dirty money, if the latter is still money essentially? It's like I can't use my pennies since it was once held by a group of Russian hackers or a Mexican cartel at some point.

More than just stars about them. Coinfirm, a new technology company, recently agreed to transfer Crypto as a compilation of high backup accounts related to anonymous activity. it is highly motivated and encouraged to improve its compliance procedures.
In other words, the blockchain is a new form of computing. With this technology, data can be shared to various "nodes" (for example computers) that can communicate with each other while ratifying the data automatically. That is, you no longer need or build a central server to hold data or information that can be accessed by various types of computers. The technology we use today depends heavily on centralized systems, while the blockchain (aka Distributed Ledger Technology, or other alias), is a technology called "decentralization".

USA is not against crypto, did you based on the statement of Trump? if that so, you don't have a real basis.
Crypto will solve a lot of problem in transaction because its decentralized, however, due to the fact that its still new, the regulation of crypto is still not that strong and people with ban intention are abusing it, if they don't like it they will just simply ban it, USA did not ban bitcoin yet.