I wouldn't be so certain about this, though. AFAIK, the governing law is , which defines immunity for the provider of a communication medium (ISP or in this case MUD imp, admin or host). However, this law also specifically mentions that criminal law is not impacted by this immunity.
IMHO, if it could be demonstrated that an admin had knowledge of criminal activities and failed to act upon it, the admin could be in trouble. Altough the very limited jurisprudence has so far kept upholding immunity even in criminal cases, the minority opinion of (by the Supreme Court of Florida, 4 to 3 ruling IIRC) merits closer scrutiny.
As Mason said, better be safe than sorry, and ban these guys after a single warning.
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