FR does not host images itself, so all images are "hot-linked" from their original source locations, but that's not a 230 issue.
If Section 230 immunity is lifted, any copyrighted image, whether hotlinked or not, that is posted without permission from the owner leaves the website owner liable to damages.
There is an entire industry devoted to tracking down copyright violations and extracting money from the “offenders”. Remove Section 230 immunity and it’s Katy bar the door.
Honestly, if I were running FR, I would institute an htaccess rule preventing unauthorized images immediately, even without the change in the law.