However, I would actually like to see mixers develop some strategies to be able to deal with thefts, hacks and other criminal activities without having to resort to KYC. I have started a thread
several months ago with some ideas about a possible "Gentlemen's agreement" among mixers, who could, without harming privacy, create some mechanisms to freeze certain funds temporarily.
I wonder how many people would actually use such mixer. Looking at somewhat similar experience, Wasabi Wallet had big controversy since they introduce blacklist half-way. But while Wasabi Wallet's CoinJoin is non-custodial, mixer usually is custodial.