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I am against such inappropriate liberalism. In any serious real sports tournament, a player or team refusing to participate on the principle of "I don't want to anymore" will result in serious sanctions, up to and including disqualification and significant fines. The same applies to fixed matches. This is, in my opinion, your first tournament where you are one of the organizers, and it's obvious that you have little experience. Other, more experienced and principled organizers treat such things very badly. Although, of course, since Wick has a lack of integrity in addition to his other shortcomings, it is difficult to do anything other than remove him from the tournament.
A ban only makes sense if it can be enforced. In the case of Heroes games, this is impossible – there is always the option of writing a fake report about a loss on something. Therefore, there is no point in banning it.