I'm not a lawyer, but I'm pretty sure someone would need more evidence than "judge, he sent 500 bucks to ChipMixer" to get a case going against you and me, no?

I agree with you. But here in Germany some have already been suspected of money laundering. They sold Bitcoin to someone and received money via a bank transfer. But the account from the buyer had been hacked. Or a bank account was opened with stolen KYC data. However, how the criminals were able to open the bank account is not so important now. But the sellers had a lot of problems afterwards because their bank accounts were blocked for a long time and they had to deal with the police.
What I am saying is that someone can quickly become a suspect even though he/she/it is innocent. And the authorities have many ways to make someone look guilty.