Storage nodes can opt out of storing content that they deem illegal or don't want to store for any arbitrary reason. There will also be a blacklisting system where we can prevent bad files from entering the network. This is an on going topic, but we will definitely have basic preventions in place.
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Cool. Some stuff is obvious, but then there is always that gray zone. The tools put in place for the obvious stuff can then be abused on the gray zone stuff, which is why these things are always tricky. I wish the answer was easy.