1/ So if his wife was playing too, it makes they are two individuals playing there.. so thay have no right to have two accounts then ??
@OP's story is clear that they created a new account to avoid the first account's limitation and @OP already admitted that they are in the wrong. Regardless, if the TOS stated 1 IP per player, what ever our reason is, if we use 1 IP for two accounts, it is an obvious violation of their terms of service. Better stop playing than being caught and be sorry.
2/ Which limitation? is this is stated on TOS ?? Limitation of players is (unethical) weird practice that sportsbooks do but without admitting it directly.. they always hide behind fake justifications when they do that!
It is indeed unethical but the regulation does not forbid nor see this as provider exploiting the players. It is normal for the company to protect its interests. They limit the bet size but do not prevent the person from withdrawing. So the player can withdraw the money and look for another casino that won't limit their wagering amount. But if the player starts creating a new account, this is considered as an action to circumvent the restriction and is a bannable offense.
Stake won't understand the this mistake unless you make them realize your mistake, prove to them that you and your husband are on this together, and make sure your husband also pass KYC too, this is the only way forward.
From @OP story, I don't think stake will reconsider since creating a new account is purposely done to circumvent the limitation of the other account. It is a clear violation of the TOS and I think doing KYC won't help either. Just read this clause of the TOS again and see how they failed to follow the TOS.
Multiple Accounts
4.9 Only one Stake Account per Player is allowed. Should You attempt or successfully open more than one Stake Account, under Your own name or under any other name, or should You attempt or succeed in using the Website by means of any other person's Stake Account, Stake will be entitled to immediately close all Your Stake Account(s), retain all monies in such Stake Accounts and ban You from future use of the Website.
4.10 Should Stake have reason to believe that You have registered and/or used more than one Stake Account, or colluded with one or more other individuals using a number of different Stake Accounts, Stake shall be entitled to deem such accounts as constituting multiple Stake Accounts, and suspend or close all such Stake Accounts. Stake will also be entitled to retain the funds till the Player proves that he did not attempt to create multiple accounts.
Lets hope Stake will be considerate and allow them to withdraw their deposit.