They can probably leave their home country and go to some country like Russia or China (or they could probably do the reverse and come to the US if their creditors are in China) and take their crypto with them. Even in the absolute worst case, some countries won't extradite to others.
Even the UK willingly accepts money from rich Russians. A lot of properties in London were bought with dirty Russian money; Russia can't get it back.
Yes, transplanting your entire life somewhere else is definitely better than obeying the law and participating honestly in bankrupcy proceedings, which are there to provide help to people unable to service their debts by providing a reset mechanism.
It's like you think bankrupcy is worse than the alternative - your debts following you everywhere, forever, even when you're utterly insolvent.
Even the UK willingly accepts money from rich Russians. A lot of properties in London were bought with dirty Russian money; Russia can't get it back.