This is completly false. Rabbit shut down because they had no business model, were making no money whatsoever, and went bankrupt. What Rabbit did (host and stream remote-control virtual machines) is not inherently illegal by any means.

Hyperbeam is the exact same thing and I've been using it for years for perfectly legal activities -- you can display maps for d&d games, have youtube watch parties, play tag-team neopets, whatever you like. It has full access to the internet, so could someone do illegal things? Probably. But you could also do illegal things with your normal web browser. Not my problem.

Unlike Rabbit, Hyperbeam has a side-hustle (main-hustle?) offering more advanced virtual machines to businesses and schools, so they do actually make money and should stick around longer.