If there was really nothing suspicious about the service mentioned in OP, government must not have taken action against them.
Lol. You think the government only take action against things which are illegal? The government works exclusively for themselves, and will take action against anyone or anything which threatens them, illegal or not. They'll take action against someone who did nothing except write open source code under the guise of tErRoRiSm, but they will ignore fiat banks laundering literally hundreds of billions of dollars for actual terrorist organizations.
the reason the mixer dev (as you want to pretend its all he was) was in legal dispute not simply for "just writing code" it was that he was financially benefitting from the proceeds of crime because he received funds from criminals that used his code.
also he offered a service and he took a fee per transaction, which made him a MSB/MTS, which comes with regulations.. it really does and should benefit you if you read regulations and court documents, instead of misinformed bias blog posts..
if you want to offer a service and publicise it to customers/clients. you are running a business
if you are running a business, you need to be business savvi to limit your exposure to customer liabilities and laws
if you want to offer a service but not be defined as a operating a business. you need to be extra savvi to operate in such a way that does not meet the definitions of such business
and banks do get penalised. its just the maximum penalty is:
for a bank: just X days fees 0.x% of liquidity
for an individual: more then they can ever afford to pay the court fine
also individuals do not set themselves up as legit businesses to shift the liability away from the operator. so by operatng a business but not doing o officially is a double hit personally
which is why individuals operating as MSB/MTS get hit harder because they are personally made responsible rather than the debt/claim/penalty/charge being pushed to the 'business'