"Our database had seeds that were both inactive and in use at the same time all connected to Hufflepuff."
To me it sounds like your company simply didn't understand how the system you created worked, it sounds like you merely understood how you wished it to work. Gambling has always favored people who actually understand the system in place, by not understanding the system you yourselves were implementing you created the opportunity for a customer to understand it better than you. What you describe with your database having seeds that were both in use and inactive at the same time, sounds to me like you did not do a good job managing concurrency on records which were crucial to your business.
While I can not say whether the users did anything illegal, the post you have created to call attention to this does not make an adequate case for wrong doing on the users part. However your response does make an amazing case for you having responded to an implementation issue in your software very poorly, and I think would make future users who are aware of this less likely to use your service.
That is just my opinion given the information you have presented, as you seem to focus more on maliciously providing information of the person you are accusing as opposed to proving your accusations that the person in question committed a crime while doing so.