I would like to add that apparently this has been a thing SINCE AS EARLY AS MARCH, and Sega is only acting on it now. They could have acted on it months ago, but waited.
They probably should have restricted trade sooner.
Well at least it's being fixed as opposed to not with zero repercussions gloating about having duped items in lobbies like back in the PSO1 days.
Also totally agree with OP on having community driven "block"lists. I know to completely ignore the guy thanks to this. Changed or not the people that have harassed someone or cheated and someone has video evidence of it deserves being reported publicly and privately. Learn from your mistakes and move on just in case you aren't banned or delt with the community will know who to look out for and stay away from.
But no, let's require shady editing of a photo, or doctoring, before being able to post about someone publicly breaking ToS.
But videos of player names and tampering is fine. At least there the videos are hosted on a site that can't be taken down.