If i would have millions in crypto, frankly i would see Coinbase as excellent centralized option. It would be way safer then anything i could provide, and i wouldn't need to lose any sleep over losing my private key.
So even after this news, do you think that you still see them as an excellent choice for your option?
If i was a criminal or blacklisted by sanctions, then obviously CEXes wouldn't be an option.
I think criminals are aware of this. They're not going to put themselves into trouble by doing so, the identities are there, and even if they're going to use someone else's identity. The funds that they've taken are going to be frozen still and that would be a waste for them.