Here's my opinion, I think this rule is great for people who make alts for no reason, but if you lost your password and can't do anything about it you shouldn't be punished for it. Even if you have had like 4 alts before, but I guess it's nice to see some proof.
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It's just my opinion though, I have no problem with him working up to black belt, I just think that it should be changed after he's let back in if you guys want to change the rule.