I understand that aspect that he can run his own relay and agree overall, I am not defending a racist and/or what he said, so please don't "yikes" as defending a racist etc. I am asking questions about the situation and am also learning at the same time. Just saying that you and others having control over someone's ID is concerning and that was changed recently when it happened.

Did you refund his Sats ?

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That's one of the risks you take by using a NIP-05 ID provider instead of running your own server with your own domain. You have to agree to the NIP-05 ID provider's Terms of Service. We don't allow spammers, scammers, or hate. Our ToS has always mentioned no refunds. Though, when our system has made mistakes, we have refunded those sats. This is not that type of mistake though.

Nip-05 is not someone’s ID