Nobody has said it is not a privacy tool. It is a privacy tool that has documented use in money laundering. Building tools is generally legal, using them to commit crimes is something different. The developer here is not accused of building privacy tools, they are accused of knowingly being in on the money laundering and profiting from it.
It's not clear from their vague, weasely language whether they're accusing him of any involvement beyond building the privacy tool. If they had any evidence of that, presumably they would have said so.
> suspected of involvement in concealing criminal financial flows and facilitating money laundering
Of course; what I'm suggesting is that they would have simply used less ambiguous language like "working with" or "providing support to". Their weasely language suggests that they need plausible deniability because their insinuations may turn out to be baseless.