Is this a rare case of justice served, or is there something more to it?

Maybe, he's a fall guy for all the money laundering?

Is this guilt by association for Bitcoin in order to open the door for more regulation?

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There is already something fishy going on. There was 2 charges that weren’t pursued and its believed because it would have exposed other high ranking people in court.

It definitely looks like he is a fall guy because he didn’t have the political connections to pull this off.

And yes it could have been done for regulation but also for taking money from the crypto community and put it in the hands of politicians. Those donations were huge