I didn't see any rules pertaining to merits exchange between alts and even theymos isn't a fan of it or if it was a violation, but do we really have to condone such acts present or past when in fact that merit system is part of the forum as well?

As per the evidence I posted above it's clear that it was both his accounts, and it was involved in exchanging merits and possibly given to enroll the account on campaigns requiring higher rank than a newbie or jr. member.