Actually, strictly speaking, Kou Hong and Dao Xuanzi were not members of the United Federation of All Realms.
They were merely part of its predecessor, the Misthaven Cooperative Union.
Ever since the Misthaven Cooperative Union was annihilated by the Dharma Transmitters, they had lost contact with Li Fan.
It was only their steadfast faith in the Crimson Compassionate Immortal that allowed them to sense, albeit vaguely, the existence of the Union.
Now that the Union had been destroyed, as long as they didn't speak of it, the fact that they had once received great kindness from the Union would never be exposed.
Unfortunately, these two were truly temperamental.
After hearing the announcement from the Alliance of Ten Thousand Immortals to eradicate the Union, they didn't hide or fear but instead tried to assassinate Cultivators of the Alliance with all their might.