Yup. It's their current favorite bullshit. A few years ago it was all about how bitcoin is single handedly causing global warming. But now it's about how bitcoin is single handedly funding terrorism. Next up will be something like bitcoin is single handedly going to collapse the economy and your IRA/pension will be worthless.
The worst thing in all of this is that through years of repeating the same claims, an attitude has formed among people that this is true - and to me it looks like some kind of operation that aims to eliminate Bitcoin at some point by simply banning trading through CEXs and mining. It won't literally kill Bitcoin, but most people still do what the authorities say.
Although their current mass surveillance has achieved nothing, all that proves is that the government needs more mass surveillance, right? 
I don't think that their current surveillance was unable to prevent what is currently happening in Israel or what happened in the US in the past, but that some things simply had to happen in order to justify all the wars that were fought in the past and which are being conducted today.
Of course, it is a win-win situation for those who want even stronger surveillance, because the "failure" enabled an open reckoning with those with whom they want to settle, and at the same time, human rights and their privacy will fall a few steps lower.
