You can give away BTC in Games and Rounds.
I've also seen many casinos give away small amounts of Bitcoin credited to the user's account. Those amounts are often lower than the withdrawal fees, and those giveaways don't get banned.
One could argue this isn't Bitcoin, but a token on a website. I can't say this is better than paying LTC on-chain.
could he be pardoned and have the permanent ban changed to a 2-week temp ban instead?
He
didn't get a permanent ban.