It is indeed sad to hear that an 11 year old swap is getting closed because of authority bullying. I don't understand how a swap can be held responsible for money laundering when they don't even deal with fiat. I mean, authorities are getting overboard with this bullying. It is not the swap's responsibility to stop such actions, as they are mere crypto exchangers. If they were exchanging that for real cash/fiat, then it would be a different scenario.
This sets a dangerous precedent. If swaps are liable for how users use crypto, who's next? Wallets? Miners? It'll stifle innovation and drive privacy underground.