See https://www.microsoft.com/en-us/photodna
If someone pre-encrypts data and then uploads that to Dropbox, it gets more complicated and AFAIK involves more of monitoring the IP addresses that things are coming from and/or being shared to.
Also, I'm not sure what scenario in which you would be able to find the encryption key, yet not have access to the wallet controlling the contracts? Even if you did, I'm not sure why hosts could not assist in cancelling contracts in a similar fashion to cloud providers taking down content on request.
I am not a lawyer and this is not legal advice, but as a third party you are not responsible for illegal data uploaded to your server/machine so long as you are not aware that it is illegal data. Once you are informed that there is illegal data on your machine, you have 24 hours to remove it.
You don't have any real proof that Company XYZ aren't using your money to do bad things.
You would stop participating if it turned out the Sia network was mostly used for bad things. In the same vein, you may choose not to use Amazon because it is unfairly treating warehouse workers.