it is possible to launder money using bitcoin, the simplest thing to break up bitcoin in some exchangers without the need for KYC.
and from the exchanger it is withdrawn with other cryto assets.
You'll be trace because exchanges uses only few wallets although with difference address per user.
If that exchange is regulated by the government, they can require the exchange to give information if the AMLC will conduct an investigation on the certain address being use for suspected money laundering, the best way to do it is through mixers, they are not regulated so it will be hard to trace the money once its on the mixers already.