If there was really nothing suspicious about the service mentioned in OP, government must not have taken action against them. When something gets out of hand, then it becomes necessary for government to take action and this is what happened in case of chipmixer.
Everything is always "out of hand" when it involves crypto mixers. After all, governments don't want people to enjoy financial privacy. Now the US Treasury wants to target crypto mixers with the excuse that terrorists will be using them for money laundering. You can read all about it here: https://www.wired.com/story/us-treasury-crypto-mixer-hamas/.
Isn't Fiat more attractive than Bitcoin for criminal activities? You can see there are other intentions besides preventing criminals from using a crypto mixer. With heavy pressure from the government, it's likely centralized mixing services will cease to exist in the future. At least, we won't be left "empty handed". Non-custodial (decentralized) mixers will ensure people get the privacy they deserve without fear of censorship or prosecution. As long as developers stay anonymous, no government will be able to stop people from using these services . I wouldn't be surprised if governments decide to hunt privacy coins next. Who knows if someday it becomes "illegal" to use a privacy-oriented cryptocurrency?
