I believe this has been rectified and now if you get caught breaking Gemini ToS, it just bans you from Gemini (I think you might even get a cool-down warning ban first).
For more egregious violations like the kid uploading naked pictures of himself, I don't know.
Glad to see this. However, given the general level of product confusion in the Gemini lineup, I'm not planning on relying on this even if it is their intent.