He could have received a warning, but that doesn't show to you. I don't think it would be fair to anyone to have their account, their potential livelihood, completely banned for one incident of light namecalling. Had the term been racist or grossly offensive, his account would have likely been removed. He doesn't have any other reports against him. He was warned, our teams followed the policy and procedure we have in place for this sort of incident.
I recommend blocking them.