Okay, so let's cut through the BS here and break this down very simply.

Nemo and Thallo are claiming that she wanted to simply give the seat to Thallo directly, but somehow their rules forbid this. There apparently has to be some sort of contest where people can win them.

Their claim is that, in order to circumvent this restriction, Nemo held this contest where he would end up being the winner. They have gone back and forth regarding whether or not they admitted it was rigged, but it's blatantly obvious that it was planned from the start for Thallo to be the winner.

They claim that this wasn't malicious or a premeditated scam, but more just going through the motions in order for Nemo to transfer her seat to the person she wanted to give it to in the first place.

However, I have a big problem with this. I'm assuming WPT did NOT require the contest to be open to the general public. I bet it would have been totally fine for Nemo to hold a contest only open to "people who have made a big impact on my life", to where only close friends and family would be eligible. She could have told them all behind the scenes that the contest is a sham just so she can transfer the seat to Thallo, and I'm sure they'd all have been fine with it.

Instead, they did this obnoxious contest where people had to watch her YouTube video and find a secret code phrase (obviously giving her channel more engagement), and then all the people who had tremendous hope to win after making the top 10 were left extremely disappointed after initially getting their hopes up. Remember, making the top 10 essentially gives you $1240 equity in the prize, but in reality these people had zero point zero equity, since it was already rigged against them.

There's also the bizarre situation with Thallo trying to sell a seat to this tournament a few days ago. Thallo admitted to Deeb that he was selling THIS seat, which is proof that he was already given this seat before the contest took place on November 30.

In any case, it is simply unethical under all circumstances to hold a rigged contest where people are made to get their hopes up to win a big prize. It's especially shameful when you choose just 10 finalists -- 9 of whom never had a chance due to it being rigged! If that's the only way you can give away a seat to a preferred person, then you just shouldn't do it at all. Otherwise, you're just fucking with the heads of strangers on the internet, treating them as collateral damage to your scheme to circumvent rules.