Any cryptocurrency donation that ends up on a KYC exchange, sold for fiat, and transferred to a bank account can end up like this. I'm not saying bitcoin privacy doesn't need improvement, but the way you describe it is misleading.
@NickJFuentes history about a bitcoin donation tracked by @chainalysis for the CIA after the guy that donated k!lled himself.
Bitcoin today is not suitable for public donations it's not fungible and it will be traced until a kyced source. His bank account was blocked afterwards.
https://video.nostr.build/363f0c128af94b60d0af85fd7e8f52d86135426778088ffe2e1fa8e7e68b0d06.mp4
Discussion
Well yeah it's so much to unpack here, I don't support Nick he is controlled opposition therefore I advice nobody give him money it's very suspicious his donations the guy suicided and the first thing he did was to sell it on a low at 16k. But we need ways for the real people to organize against the government and most people are illiterate like him on bitcoin we can't expect more from them so any attempt to form militias funded with bitcoin have zero chances to go well.