Epstein absolutely should've been locked away in 2008. I think it's more of a failure of our justice system than the Media Lab. I don't think the Media Lab did anything to assist Epstein in any way except enabling him to say he donated money to them. I hope the Media Lab took his money out of necessity rather than convenience but I don't know.
I wish we lived in a world where all of Epstein's assets were seized and allocated to victims (both specific and general), educational institutions and whatever else seemed appropriate. I wish the Media Lab took Epstein's money in this way.
Honestly, it's really a philosophical question. It's the classic debate between consequentialism and deontology. I'd argue that the consequences of taking his money were positive. I'd assume you'd say the action is inherently immoral.
We could go back and forth, talking about the trolly problem among many other contrived examples. Tt's a tricky subject.
There's a lot of these situations out there like this Nazi anatomy book we still use: https://www.bbc.com/news/health-49294861.
Ultimately, I think we could agree that there are worse people out there, deserving grave punishment, involved with Epstein. I'd rather see this energy be prioritized to identifying and convicting the worst people first. After, I think debating the Media Lab's funding less than 0.3% of its budget morally condemns it.