If it pleases the court, I'd like to make an argument why this actually does impact Amazon's bottom line - in fact, by millions.
When given effective tools, legit authors are able to sell the crap out of books. I mean... take a look at what permafree does. It seems on paper to be nothing but a Loss Vortex. But for those of us who have been around for a bit, we all know that the magic is once we hook readers with our first book, if it is good, they go on to buy the rest of the series, bringing in a lot of money for Amazon. I could rattle off a list of at least 100 authors I know personally who are earning six-figures, and a few making seven-figures a year, and if they're pulling in that kind of cash, that means Amazon is earning a crapton of money, too.
So, while these scammers are merely taking money from the fixed KU pot which mitigates the financial hit Amazon takes, it is the sell-thru that actually gets the hit. The scammers aren't bringing in customers who are then buying a series of twelve full-priced books outside of the KU program plus an impulse purchase of a patio furniture set. They're just taking the money and running. Soooo... obviously the fact these folks are still around means that nothing is going to be done about it, and technically no laws are being broken... but for a scammer like the one in the article to take $2.4M from the KU pot and for them to then bring in no financial benefits to Amazon... I don't know. That seems like it's not a loss leader, that's just a loss and, to my mind, a couple million dollar handouts might be something a company might want to plug up so that authors who ARE bringing in money can do so more effectively. That said, Amazon's the one controlling the world and I'm a mere cog in the machine. More brilliant minds than mine have a holistic view of the situation, and I'm describing the elephant based upon the tail I'm holding. But... it seems like there are ways to solve the problem better so that those of us hustling to bring in the real money have an easier time.