Whats stopping someone from creating a instance that host illegal content?

I've seen the controversy where lemmy.world defederated from 2 piracy instances. So since there is no one big owner what is stopping someone creating a instance that host CP or other illegal stuff?

From what it seems like is instances can try to defederate from those instances but the only justice that can happen seems only from government/police but that only works in certain countries because more can just pop up bypassing the defederation.

I'm kinda concerned if this issue has no solution because it's a pretty sharp edge of the double edge sword of having instances anyone can create and host.

Because someone can just host a CP instance and now that instance even if defederated from other instances still provides a safe space for pedophiles to share content and other illegal stuff.

Also what is stopping someone from creating an instance that has a slur for its name and then go around in other federated instances and post comments and make post. Like you don't want someone named "NAZI_LOVER@n-word.f-slur