The links I cited show that this is incorrect. No-ip was aware.
No-ip was aware of the potential and had an abuse team to deal with such cases. They were also aware of other experts finding their abuse team wanting. But that doesn't seem to be enough evidence to suggest they were partly culpable in any particular case. Perhaps there were examples of particularly galling incompetence in their abuse team, or the abuse team tipping off fraudsters but otherwise informing them seems to be the most reasonable and responsible action.
Every domain provider must have an abuse team or at least an address to send abuse notices too [http://who.is/whois/cloudapp.net/], that PR statement from No-IP states no facts or figures of many abuse notices they combat - which I would cite if my abuse team actually did stuff "look how amazing our team is - we had x,000's requests and took down x00 of malicious hosts just last month."
They (noip.com) had zero pre-warning of a domain seizure. Regardless of any literature you dig up from years ago that states some botnets use Dynamic DNS services such as noip.com, it does not mean they had warning they were about to be seized. Others have commented that the court order forbid anyone, including Microsoft, from informing noip.com prior to the seizure.
It should be noted, that most/all "cloud" services likely have some sort of illicit behavior being conducted through them... Ec2, Azure even, etc. Botnet's use the same services me and you do... that does not for even a second make noip.com responsible for the botnet's actions.