OP in this case isn't the customer, they are a supplier who has agreed to terms then decided to go against that agreement in a way that allowed scammers and himself attempt to defraud Googles actual customers.

OP isn't the good guy in this story. Them breaking a very basic, clearly worded rule assisted in fraud. Of course they deserve to be banned from the network if they can't even follow that rule.

Also all the other people in this story complaining about their rates falling off a cliff can blame people like OP who place ads in places they shouldn't leading to low quality traffic. No one wants to buy network ads if they have quality anymore.