I mean… that is the big issue with things like tor and the decentralized youtube alternative everyone wants.

This is an issue on Lemmy as well, one that very few so far seem to have wisened up to. If you host a server and federate it, your server will pull, store and display the content your users are watching for all to see. So you could be on the hook for distributing illegal material if you don’t preemptively defederate from instances potentially hosting content that is illegal for you to possess.