Sounds to me like the students were simply baiting the agency and that action finally got a response. Starting the paper with an invitation to illegal action is not the brightest idea. I suspect they were just out to get your attention, but it still was a childish comment.

Let the courts have their say, it doesn't matter. Data gets leaked all the time and if this is a true exploit sooner or later real crooks will use it and that will be that.

As far as the students..... If you're going to be dumb; you better be tough.