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Before anyone starts speculating on what the developer did "wrong", keep in mind that the Mac developer Charlie Monroe was mistakenly flagged and then reinstated by Apple just a few weeks ago: http://blog.charliemonroe.net/a-day-without-business/

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His app opens fine for me: https://apps.apple.com/us/app/attics/id1434981632

Does it normally disappear if a dev account is terminated?

Not necessarily.

You would think a developer accused of something as serious as _fraud_ would have their apps at least removed from the app store... this whole thing is a little odd.

Being considered by Apple to have defrauded Apple does not necessarily indicate that Apple sees a risk of user harm stemming from that fraud.

The app is still in the store at the moment, which is even stranger.

I know it can sometimes take hours for an app to propagate in the App Store after it's been released by the developer. No idea how it works for Apple pulling an app though, if they did or will pull it.

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