That depends on what you mean by "bad actors". If you're just talking about illegal content then it's just that the law isn't universal. They just find a host somewhere where whatever they want to host is legal.
this post was submitted on 15 Aug 2023
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Well, not just content, but also activity like making fake sites to steal credentials, send out phishing emails/texts, and that kind of thing. I guess that may fall under the same point though, of the law not being universal regarding these activities, e.g. talk of some governments ignoring bad actors so long as their activities only target other nations' citizens.
also activity like making fake sites to steal credentials, send out phishing emails/texts
It's pretty common for that sort of activity to use stuff like botnets or compromised servers. In other words, the actual owner isn't aware of what their resources are being used for: they got hijacked. There's lots of stuff on the internet with very lax security so unfortunately it's not really hard to do.
It's the latter. As long as the bad actor gives money to the hosting company they don't really care (and for legal reasons they either can't or won't monitor things too tightly) what you do with the capacity you paid for. And when it becomes annoying enough they'll suspend the account. Rinse and repeat.