Bybit despite how many exchanges been hacked before, they still were hacked like they didn't hardened their security for this type of attack. Whether the reputation of mixers going to stay bad or not, I think I will still be rooting for them to be successful in providing services.
And if they are going to be forced to decline services to Larazus group, they will also lose the reputation. So mixers are really in a bad spot in this kind of situation.
But I also wouldn't trust blockchain that will freeze the stolen funds because that would prove that ETH blockchain is centralized no different to the middleman we currently have like the banks.
Man, dealing with exchange's security is like playing never-ending puzzle. You can't really sure if your security(code) safe until someone found a chance to exploit it. Different hackers, different method and trick to exploit.
Sometimes, i wonder how much ratio between ordinary people used mixers compared to the criminal group. I very often heard mixers related to the criminal case instead being used for the good.