If they were legitimately selling prescription drugs while selling btc, then they are probably morons.
It may even be possible they they were actually drug dealers, who were just using bitcoin for payments,
and thus the government tacked on "unlicensed exchange" as well. I would need to see the complaint to
know what the case is actually about.

But ultimately, they are guilty of being an unlicensed money transmitter if their state defines them as that.

My only argument throughout this thread is that not all jurisdictions are the same. Unlike some people think.
In theory, if these two people sold btc within a friendly state, they would be free men right now.