Because instead of an annonymous user, there is now a company to sue. I don't see them lasting unless they create copyright controls that will make most people not want to use them.

They exists for over 4-5 years now (I don't remember exactly the first time I discovered this service, but it was around that time).

I believe the are located in an area where legislations are less strict and they can do this without having any problems.

That would explain it. Thank you.