Laundering money is not so much about the amount or the money form (bitcoin or fiat), it is mostly about the technique the criminals use. Which comes down to where they are going to inject their "dirty" money into to get "clean" money out.
For example it could be a token! a completely useless thing is created, then the dirty money goes into it buying that garbage at for example a million dollar a piece and the other side is getting something that looks clean.
Haven't you ever wondered why some shittokens sell for such high values that make no sense?
Even if theres no suspicious activity, we still need to remember that transactions are reported to the money laundering agency. In the US, for example, theres a threshold-- any withdrawals or deposits exceeding $10,000 (in total for a single day) must be reported. This is mandatory for all financial institutions, not just banks.
https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-actthe regulations implementing the BSA require financial institutions to, among other things, keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
So, if theyre smart, theyd avoid routing the money through traditional financial institutions since its easily traceable.
