If I purchase stolen goods from a thief, I might be breaking the law even if the thief has signed a contract swearing the goods aren't stolen.
If I purchase stolen goods from a thief, I might be breaking the law even if the thief has signed a contract swearing the goods aren't stolen.
That being said, I would not be surprised if the FBI freely used a 'National Security Letter' [1] to force these guys to turn over data about specific connections. And since, as a service, these guys may be subject to the requirement of giving the FBI a way to wiretap their connections [2] it may be that once they knew the service was being used it was a 'simple' matter of compelling them to provide an unencrypted copy of sessions of interest.
[1] http://en.wikipedia.org/wiki/National_Security_Letter
[2] http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-153...
More appropriate examples would be Napster or Limewire. Their TOS's barred using their programs for illegal ends, but both companies actively promoted illegal downloading. In the end, liability issues brought down both companies.
IAAL. Please don't armchair lawyer, or you'll end up like the guy who runs TechDirt.
Unless you're in a jurisdiction where the knowledge element can be satisfied by whether a reasonable person would suspect that the property was stolen. In that case you could be found guilty.
You're confusing the standards applicable to tort law (another person sues you for damages) or regulatory infractions (government sues you for money) with criminal law (government tries to send you to jail/prison).
USSR perfected that approach but we are getting there.