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Edit: Apparently it isn't illegal to pay for players to work for you, thought was different.. Maybe different with other servers like for trading for in irl money for ingame limited item someone has. idk pretty sure people have got done for similar offences though in the past, guess if they want to do stuff like this, it's upto them.
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If what I'm doing is illegal, then all of the players in Graal City would be banned for exchanging gifts with another player through gift 4 gift. The player you mentioned was banned because he actually broke the rules. Same goes for all of the other players, who are currently banned for doing whatever raffle/giveaway stuff that they were doing in Graal City. They were probably scamming/blocking players after they recieved their gifts. Plus, I remembered that Cookie player used to hack with his alternate accounts on top of buildings, speed hacking, and such. So there are actually other factors that comes into play!