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Taking your statement independently of this particular situation: if they're paying taxes on their crypto gains, I don't see a conflict in wanting that? There are plenty of people doing forex who would (IMO correctly) expect the government to do something if their foreign currency is stolen by fraud or deception.

If you use google sheets and discord to run your org then it's pretty clear you are not in it for the decentralization. Is it money? Or is it the cool mystique of these emerging technologies? I don't know.

It’s for the people! It says so right in the name!

People want their eggs and milk privately, but when the shopkeeper steals their money and runs away, they want the police and the courts. That's not really inconsistent.

But these are "don't tax my eggs and milk!" people, and "my shop is police-proof and sale receipts are the law" shopkeepers.