This could be part of the Bitzlato crackdown [0]. Localbitcoins was referenced as one of the top counterparties.

*...Similarly, Bitzlato’s top three sending counterparties, by total amount of BTC sent between May 2018 and September 2022 were (1) Hydra; (2) Local Bitcoins, a VASP based/incorporated in Finland; and (3) “TheFiniko.”*

[0] https://www.fincen.gov/sites/default/files/shared/Order_Bitz...