Illegal usage of IP addresses?

Someone said a while back that a server operating inside one country but employing or alloying or issuing and IP address on that server when that IP address is issued to another country is illegal and that server owner/ISP issuing would most likely lose their license.

Look at this:

Virus writers are picking up new Microsoft attack

""The server used to deliver the components used in this attack is presently located in the US, but the IP is assigned to a customer in China," Bureau said."

http://www.computerworld.com/s/article/9179564/Virus_writers_are_picking_up_new_Microsoft_attack

If it's so illegal then why don't they just shut this off?

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