Objectively unethical, subjectively criminal activity. In 2016, it was unregulated software code during a "code is law" mentality. The regulatory agencies hadn't caught up (the IRS had laid claim in 2014 then revised in 2019).

Yes, similar reasons would justify taking your fiat away. I do sympathize with the Ethereum Classic crowd and generally agree with the code is law idea. The investors very well knew the risks.