To me, this sounds like the virtual equivalent of evacuating a whole neighbourhood because of allegations that someone is doing something illegal there.
The people who have been force-evacuated should sue the pants off the FBI and Verizon/AT&T. If they can't, then the law in the US is really quite ill-suited for online businesses. Perhaps they should look for their hosting needs in other countries.
That's a very poorly written article. It seems to be following up from an earlier story, but gives absolutely no context or description of that story. What happened, who it happened to, and why? None of those are even touched on.
Down at the bottom of the story, quotes are attributed to people by their last name, with no previous mention of who those people are or how they are affiliated with the story. The only complete piece of information in the entire article is an account of a customer whose website is down.
Reposted from reddit. It looks like this was more about telecom fraud than anything else. Its highly possible also that all of the servers seized were involved somewhat in it. It's also highly possible that Verizon and AT&T are being bullies again.