It's the dude's livelihood, though. There are laws about taking someone's tools if they owe a debt for similar reasons. I think it is a very similar thing.
That's not a very strong argument. Lawyers have been disbarred before, doctors have had their license revoked.
I think there's little dispute that he's a very good chess player. He could perhaps earn a modest living as a chess tutor. That should be good enough, he's not entitled to riches.
After being publicly labeled as a cheater by the chess community, and having his name drug through the mud? Sure.
Then everyone will think his students are cheating when they perform well!
Obviously he wouldn't be able to charge top dollar.
His coach who confessed to cheating numerous times still charges out $250 p/h for lessons and has students so...