Right. So my answer to this question is no.
"First, if you, an unbiased person, take a look at the above graphic by Elliptic, do you come to the conclusion that "unhosted wallets" are what enable cartels to launder money through cryptocurrencies? "
The mules get the money into the existing financial system. There are tons of ways to do this that have nothing to do with cryptocurrencies. That's why KYC/AML is a waste of resources.
