As they accepted payments through paypal, it'll be easy for law enforcement to track down the owner. PayPal is very cooperative in these cases (as any bank). A

As they accepted payments through paypal, it'll be easy for law enforcement to track down the owner. PayPal is very cooperative in these cases (as any bank). A shell company won't help them if someone knows where they have their office. The criminal offence isn't against the company anyway, it'll be against natural persons working for the company. But the worst that can happen for them short term is that PayPal (and credit card vendors if they use them) block their account if they get too many charge backs as a result of that.