That is list of accounts who sent merit to accounts which are banned, nothing else. Just ignore it.
But now I feel that my reputation is at stake with every single merit that I am obligated to distribute.
Nonsense.
However, I keep checking my trust rating to make sure some DT member doesn't decide to red tag me because they feel that I am being "abusive" or derelict in my duty.
I don't see any reason why anyone should tag you. You are not:
1) selling/buying merit
2) exchanging merit between alt accounts
3) ranking up alt account farm which will be later used for all kind of shady deals(scamming, payed bumping etc) which is anyway very hard to prove unless it is obvious