TMD and other site hosts don't employ bots to keep scanning data. They rely on reports from whoever visits the sites hosted by them. And in that case, that german agency was one of them.
The big thing about their report system, is that they usually require pointing out offending URLs one by one. GoDaddy itself is like this.
Other than that, this site receives visitors from all over the world, not just the US.
In Brazil, any material depicting underage sex is considered child sexual abuse material Be it written, image, video, etc. Brazil has no leniency in this case, there is not a single "free speech" host in Brazil or a host that allows that kind of material.
As I said, despite the US law being more open, TMD upholds the law of the country the user is in, not the law of the country the site is registered as.