He made a lot of money from the other criminal activity. That's what money laundering is: just because you're not directly trafficking children, for example, doesn't mean you have clean hands when you make significant profits from the people who are.
Crypto's problem is that when the law is updated to deal with these stunts, it's suddenly just a crappy version of the existing financial system.
It is both a reason not to buy drugs now (you're sponsoring all that other stuff) and a reason it's a ridiculous and immoral policy.
It is also on no way comparable to crypto.
The BSA is not a technicality and trying to reframe it as one is wild. It is to make sure that people that have a financial incentive to turn a blind eye to money laundering don't turn a blind eye to it. You don't need to be directly involved in the money laundering to be incentivized to let it happen.
It's certainly in a different category than speeding or jaywalking, but it's a lot closer to that than to the 150 years that Bernie Madoff got.