The player was exploiting the game and should be punished for doing so. The exploits shouldn't exist to allow the player to do it. Both sides are at fault.
Solution? Ban the player for one week and during that time fix the exploit. As for the foul language, they need to either employ a filter or ignore it - it's clearly not abusive and therefore should be tolerated, especially in private chat. But banning people for using foul language is unacceptable, just like banning people from playing games for forum comments is unacceptable.