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Hosting an exit node is not illegal, but some of the users of that exit node may be doing illegal things.

Tell that to the SWAT...after the smoke grenade clears out.

Are smoke grenades a legit thing outside of counter strike?

Yes: https://dod.defense.gov/OIR/gallery/igphoto/2001245589/

Did you miss the part where it wasn't the US?

every country has their own version of SWAT, some will make USA SWAT seems like angels. Also, I replied to "there's nothing illegal in running a TOR exit."

In short, my reply was: maybe it's not illegal but you might suffer quit a bit by the time it's all cleared.

The exit node could be the last known trace of illegal activity so someone could perhaps take a shot at you for aiding & abetting or similar. Right or wrong, can you afford that fight?

This is one of those cases where often the question is not whether your actions are legal, the question is whether you can afford the time and resource required, and in some cases take on the potential reputational risk, to successfully defend yourself against someone (commercial, law enforcement, political, ...) who says they aren't and tries to make you stop.