snk come back to us bro
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Ofc it's reluctantly legal! It's legal not because it's legal, but it's legal because scamming of this sort cannot be substantiated. So admins can have any basis to punish people who scam.
Snk jailed them because he witnessed the act of scamming himself and since powers were in his hand he could jail them. If you got scammed and you told him that, he wont be able to do anything because there's no evidence.
And speaking of someone doing that, I don't think the current staff would bother even as Snk advises so because he is no longer manager. It's also decentralising the enforcement of rules, making it unequal and unfair for those with no power - the players.
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