My question is why did Twitch and by proxy Amazon hide what he did when they banned him? They protected him from the fallout of those actions for years. I doubt YouTube had no idea why he was banned from Twitch. Seems more like somehow some legalese was written into his separation that stated Twitch wouldn't put it out there what happened and YouTube probably thought it safe to deal with him.
For YouTube to upfront reject him from the platform after he was banned from Twitch because of what he did to me would be fine. For YouTube to take advantage of what he did and sign him then turn around when his actions get exposed and try to suspend his subscriptions all the while they profited off him is disgusting. They don't care about the fact that he was involved with a minor they're playing both sides of this just to now save face and look like they're doing something when him going after that minor is why he ended up on YouTube in the first place.
They not gonna give none of the money they made off the whole thing back. They'll just wait for it to blow over.
This really isn't the complex and nuanced issue you're trying to make it.
If we believe all that's been rumored, Twitch and Dr. Disrespect signed mutual NDAs regarding the matter because the way they dug up the dirt was iffy. Again, if we believe rumors, Twitch staff dig through chat logs that partners may or may not have been lead to believe were truly private (why anyone would believe get is beyond me, but still). So it was a case of both sides agreeing that they fukked up, and to not talk about it.
The NDA gave Dr. Disrespect effective cover to negotiate a new deal pretty much freely. Most people are inclined to not assume that someone's into underage shyt, so that question probably never came up, or if it did, he could have easily lied, since the NDA meant that there wasn't a way for him to be caught in said lie immediately. None of the rumors about what happened around the time, at least as I remember it, had anything to do with interacting with minors. YouTube signed a deal with what they thought was at worst a shytty streamer with the occasional right-wing weirdo moment. Instead, they got put into a position of having to say they were willingly offering continued support to someone who admitted to some out of line behavior. There is no world where they don't pull the plug at their earliest convenience.