Since the exploit is basically the same thing as duping (although a little different) I think it should be a perma ban. At first I though a few months ban and all items and gold removed would be enough but it is so severe.

I think they should have to track all interactions with the characters also, someone could have used it to farm 100k gold then stash it on their alt, or stored hundreds of recipes away on some other characters.

The ones that used it to get raid gear should ofcourse be in the biggest trouble, but I think anyone that used it more than once should be severely punished.