I don't really think so. Because if we take a closer look, the bitcoin blockchain is an open ledger that really everyone can see. Anyone can track any transaction. Sure, you can't say who exactly is behind it, but you can still understand everything as long as they don't use a mixer service to prevent this. But I think most people know that too.

There are also companies like chainalysis that analyze the blockchain in detail and try to find out who owns which bitcoin address. So by and large, the bitcoin blockchain is not 100% anonymous.

Fiat money is used by more criminals and more often than the bitcoin blockchain. Yes, the bitcoin blockchain is also used by criminals, but certainly less than you might think. Either way, there are ways to track down such people and they are used. But that does not diminish the interest in bitcoin. Neither by people who use the blockchain normally or by people who want to use it for illegal things.