Postscript: the person in question states that this was an open site with no restrictions, and I am pleased to read that. However, it is still unclear if this was because of a special campaign to reach at risk populations (like undocumented people) and I can't help but think there was a naive element of playing the system here.

Regardless, they or YC should have addressed this publically at the time, rather than waiting and staying silent. The YC brand is damaged because we don't know if they acted ethically, or enforced the omerta. Everyone's reputation is taking an acid bath because of unclear communication.