Perhaps what makes this case most interesting is they're in a "damned if you do, damned if you don't" situation. If they fire the admin, they'll likely be labeled as *-phobic, but if they don't, they'll likely be branded as pedophile supporters.
Being trans is not a free pass to be pro-pedophilia and it's absurd that this could be considered a controversial take.
https://www.thetimes.co.uk/article/lib-dems-suspend-trans-ca...
It, for YEARS, had at least a dozen (public!) subs that were explicitly for exchanging sexual photos of underaged people and it was an open secret that DMs with power users there was a way to access actual child porn.
They gave a site-wide award to a power-mod who managed a huge number of these and other awful subs. They finally banned the subreddits when it got media attention. People on the site had been calling for them to do it for years.
Not CP, but there was also /r/creepshots. Ironically, that was more legal than /r/thefappening.
Hard call to make really, as by it's very nature we don't know how often a silencing situation triggers the effect.