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Nintendo is suing the creators of Switch emulator Yuzu
(news.bloomberglaw.com)
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Don't know how good a case Nintendo has here unless it can prove that Yuzu itself contains proprietary code that allows the ROMs to be played. If the decryption is being done on the ROMs' end, then that's just another reason to go after the ones dumping and distributing the ROMs. Nintendo couldn't even substantially stop Dolphin, and Dolphin actually had a decryption key straight from Wii firmware in it. Good luck to them, but they're likely going for the wrong legal target. Taking down what ROM sites they can (which would legally be a lot easier than the emulator makers) is just getting rid of drops in the ocean of the ROMs' spread, but they're the target Nintendo should be going after.
They don't, they just want legal money drain u til they cave. Nintendo is abusive af.