Do you honestly believe anyone "accidentally" copies and pastes a password?
A server compromised, the LLJK member gets banned for all time, the other guy gets off with "accidental" and a week vacation. Being firm is fine, but only when evenly and neutrally applied.
Not that my opinion matters of course, your servers- you do what you want. Just saying that if you're trying to be the neutral judge you should rule neutrally. In another case where someone handed out access to a destructive actor they too would get a severe punishment rather than a laughable slap on the wrist.
Sends a pretty clear message though. "As long as you get someone else to compromise our servers, you will be back to murdering peasants within the week."
e: Also i somehow think if chadz wanted to run servers, he could have had dozens already and people rushing to hand him the money to do so. This thread should be indicator enough why people aren't exactly thrilled with the idea of administration.