Lets say i have 100 BTC and im looking for some USD. You have 10,000 USD that you are willing to trade. I launder my BTC, send them to you, and you hand me 10,000 USD.

You think im going to fill out a 1099 for this? you have to be out of your f*&$ing mind. If you sit there and fill out a 1099 and willingly give your money to someone whos trying to extort money from you, you belong in line at the slaughterhouse.