Is there any way to exchange bitcoin for cash anonymously? Burner phone with in-person Craigslist arranged trades (where you hope the other person isn’t FBI)?
There are a few p2p exchanges like localbitcoins or Bisq where some anonymity can be achieved. But those type of trades don't scale far without risk.
There are a few local Bitcoin apps and sites. I don't think it would scale well for the FBI to have a sting on every Bitcoin to cash transaction, but would be good to have one on suspected Bitcoin wallets. Although most savvy cybercriminals at this point should be able to mix their dirty coins enough to avoid such a trap.