"With threats of executing an official search warrant and taking the matter to court...an agreement was quickly reached to close down the site"
Really, if he really wasn't doing anything illegal in the first place, I can't see any reason he should have caved in on this... and this is in the UK, where it's my understanding that if you try to bring someone to court and lose, then you have to pay their costs, which I imagine exists to discourage overly subjective, baseless, or slapp-like lawsuits.
The fact that he yielded on this suggests to me that he was aware that a search warrant would find something on his computer(s) that shouldn't have been there in the first place. It's unfortunate the site is gone, but we're not actually seeing the whole story here. Sadly, because of how things have already went, we probably never will.