They've recruited a lot of volunteers from various places around the world who could individually have some legal exposure I suppose but yes... It's a bit disappointing overall.
I assume all instances have rules and how far out there you want to go is up to you. Someone says lemm.ee doesn't block these sites but rule 2 of that site is No Illegal Content which could arguably cover piracy related groups. Doesn't stop you just having an alt on the server hosting this stuff you want to look at however. Just be aware that if stuff is illegal and it's illegal in the jurisdiction the server is hosted in then it's unlikely to last long.
Literally the best thing to do is spread the load and increase our diversity of instances and communities elsewhere other than one big one, to keep it sustainable.