You can also "wash" physical bank notes but that in no way helps you launder the money, you still need a plausible explanation on how it is in your possession when The Man comes asking.
Yeah that is the dangerous thread as far as getting caught goes.
"I invested well in Monero"
Definitely a good point, though really depends on where how that Monero trade happens. If it’s ever traded/redeemed on an exchange, that privacy mostly disappears.