A French security official was arrested last week on charges of selling state secrets on the dark web and accepting bitcoin in return. Has bitcoin become the preferred payment method of organized crime?

Judas sold Jesus Christ for 12 pieces of silver, one of the highest crimes till date, and up till now silver is still precious and its popularity hasn't waned. If bitcoin can be used as payment for more crimes in exchange for far more popularity, acceptability and stability, we think more payments should definitely be made Grin
All publicity is good publicity. Also, the fact that organized crime groups are using it shows that it's the most secure and efficient means of payment out there. These aspects are much more important in their case.
But mostly peoples are using BTC positively for their interests and also for the business purpose. Don't think about those peoples who are involved in the bad activities.
Bitcoin just like every other currency has it lapses even the dollars and the Euro can be used by criminals on the dark market but why crime rate using bitcoin is high is due to its decentralized nature and how volatile the market is. Bitcoin transactions can never be traced by anybody or government.
Criminal transactions using bitcoin are quite insignificant compared to operations using cash. Just about bitcoin in this way love to be mentioned in the media.
Bitcoin is the best payment method for them, then they exchange bitcoins in USD, so this is the time when, as you say dollar reigns supreme as the currency choice.