No-ip was complicit in the illegal activity.
If you use a car wash that is also laundering money, your legitimate need for a clean car is not a defense against shutting the business down.
If you use a car wash that is also laundering money, your legitimate need for a clean car is not a defense against shutting the business down.
To use your car wash analogy, it's more like the car wash unknowingly washed the car of a drug trafficker and then was essentially put out of business the next day for being "complicit in the illegal activity".
I'm not totally okay with what happened here, but I'm confident that it was not a "oops, sorry, we'll ban that botnet" situation. no-ip's primary use case is botnets, and they do have a responsibility to minimize botnet use. They can't claim ignorance given the widespread use.