They are a lemmy instance dedicated to the facilitation of piracy, and copyright infringement in general which is illegal. It is by nature in violation of the rules of your instance which prohibit illegal content, therefore it is imperative that you defederate it in accordance with your policies.
I think you missed the whole point of this, or you're misrepresenting on purpose. It's literally an instance that violates their rules, you're all conviently ignoring that fact because you don't want to see them defederated.