Precisely. And they have the shortcut of violence; while in theory someone could do something like "create shell companies faster than the legal process can crack them open, thereby hiding one's activities behind an infinite regression of spheres," in practice that's fraud and if the authorities glom that your meta-project is that, they can throw you in jail (or your proxies in jail) until you're willing to divulge what's actually going on.
A truncheon and jail cell are the ultimate debugger.
> while in theory someone could do something like "create shell companies faster than the legal process can crack them open
I don't think that even works in theory. It's not like a shell company is a computer process that totally ceases to exist after it terminates and can longer be investigated: there's all kinds of logging and record keeping for a real life company. The authorities can start investigating a defunct shell company and trace it back to its origin (which then will reveal the whole "infinite regression of spheres").
A truncheon and jail cell are the ultimate debugger.