I am sure though that people behind LocalBitcoins are not allowing the goodwill and reputation they worked for years to go to waste.
But they seem reluctant and quiet about the issue. If they really care about their reputation and considering this isn't the first time, they should have at least a control team that handles this kind of issue. Honestly, implementing KYC is becoming the escape goat of fraudster.
Though not really fan of LB, and just use to buy some satoshis before, hence not used on storing my coins in any exchange site.