Well sure, but the point is the institution put a stop mechanism in place, when it was found out that someone had worked around it then a group of them were canned too. The media lab is a tiny part of the smallest school in a very large institution and the sums were correspondingly trivial compared to the institute's annual budget. (even all of education is a small fraction of that budget).
It's as if Google's parking valets were found to be running a car theft ring (made up example): unless Google seemed to think it below their notice, I would have a hard time considering that should be grounds for condemning Google.
I'm not defending MIT (or conflating car theft with sexual abuse) I'm merely saying that if you want to attack MIT consider something more substantive like its slow progress in recruiting and retaining female scientists; it's intimate ties with the government and military (despite various fig leaves assembled over the decades), or its treatment of undergraduates which at best is neglect. Don't waste your efforts on a small, if noisy, lab that has produced negligible research of consequence.