Yes, there was rule that if someone sponsored more than 5 accounts, they will be refunded. And from the beginning it was actually allowed by UF to have more than one stake, it was changed after time by community demand and by criticism from some NXTers. I dont even see how UP broke those rules.

And I dont even think that he did something wrong. He was trolling other coin? He has right to voice his opinions on other coins, no?. It was responsible from him towards NEM project to express his opinions privatly - via alter ego account, to not draw undesirable attention and negative response to NEM. It seems just rational and responsible to me.

The whole point of "fair distribution" to me, was not about having perfectly equal shares, but to not have whales, that could manipulate the market easily...I remember that NXT was often accused of market manipulation by whales, UP probably just wanted to avoid it.

This is my personal view of the problem.