All this drama is sad. I like lib.rs, it has better search results and easier to use UI than crates.io.
If it was me who ran it (and it isn't) I'd probably include crypto results but put a big banner on top of their pages (and small ones in their search results) about me distancing myself from that. The crucial thing I belive is to make it clear what is happening, and to communicate clearly and transparently.
I wouldn't reuse "deprecated" tag, nor use derogatory wording in general. While i agree with the sentiment that crypto is a major problem and rather useless, some of the wording lib.rs has used is rather loaded, and feels like it can be interpreted as akin to name calling.
I found that the best way to reduce drama in my life is to not get sucked in. Say what I think with as neutral tone as possible and leave it at that. Not always easy, but I strive for it (which is what I'm attempting to do here, and why I rewrote some parts of this post after reading it and thinking about how it could be interpreted).
Additionally, I hope the author will reconsider the move to closed source, because I dont think that will solve anything. Rather it risks adding fuel to the fire, since people wanting to argue will point to this and say "look, we have no idea how it works any more, you can't trust it" (or even worse things).