1) global logistics normalized, moving the bulk of the money laundering activities back to their usual places (eg physical art),

2) people started realizing that the blockchain actually created a papertrail that’s much harder to conceal than a bunch of literal paper documents scattered across a web of global freight forwarding companies and shell companies and

3) KYC rules turned most fringe crypto exchanges into tightly monitored trading platforms

Crypto as a whole became less utilized as a laundering & gambling medium for those reasons, but it didn’t fully disappear since ETFs keep liquidity happening and transferring money with crypto is still better than swift in a lot of cases. NFTs went away because they had no use whatsoever