What exactly is illicit about what they did?
Legally, model output cannot be protected by IP laws whether domestic or international. The most they can hope for is civil relief which is a stretch given the literally illicit methods they used to train their models.
Ahtoropic got treated the same way it has been treating everyone else. This is the bed they made and now they, too, have to sleep in it.
Anthropic is master of Newspeak (see previously bugs -> vulnerabilities wrt Mythos). Distillation violates their terms of service, which is a civil offense, not a criminal one. It is not illicit, illegal nor breaks any laws.
It's a clever choice of words because "illicit" does not necessarily mean illegal, so they're technically not wrong, even though that's the connotation they clearly want to convey.