Good explanation. I can't at all see how that government is going to label specific sats as being tainted because they once passed through the wallet of a criminal, without also doing the same for USD. If you live in the USA and have any paper currency older than a couple years, it's almost certainly been used for something illegal.
Discussion
90% have cocaine on them for starters.
https://www.nationalgeographic.com/science/article/cocaine-on-money-drug-found-on-90-of-us-bills