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Perfectly legal to me, unless of course, one does not believe in the 2nd amendment.
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Let's see...he gets in huge trouble for building/transferring an illegal SBR, then signs an agreement with the ATF that he would never again be in the business of selling firearms. He then goes on to purchase several hundred firearms, which he sold openly on his website (many even on this site have purchased those same guns from him). He then gets nailed for it, but now we're supposed to go picketing on his behalf with signs that read FREEDOM? I don't think so. We all sleep in the beds that we make for ourselves.
I live quite modestly because I choose to live an honest, clean life that is congruent to the laws that society has established long before my birth. I could "buck the system" and live lawlessly, just as some have clearly chosen to do, but there is a risk vs. reward analysis involved. Sometimes you can steal the steak, other times the butcher is going to catch you red-handed.
He signed an agreement with a Federal Agency that has the power to throw him in prison for a long, long time. He broke that agreement, and he did so openly with no attempt to hide it. That's just plain stupid.
If you want to go and sell hundreds of firearms on a website without being licensed, be my guest. Once you take the bite stick, don't expect the community to come to your aid "because 2nd amendment, bro."