The ledger is traceable, the coin is not. Not all transactions have to happen on the blockchain. In fact very few do.
If I put $80m worth of BTC in my hardware wallet and physically hand it to you in exchange for a truck full of black market rockets, who is going to trace it?
If I put $80m worth of BTC in my hardware wallet and physically hand it to you in exchange for a truck full of black market rockets, who is going to trace it?