You said it yourself:
“where he could hack himself money and items.”
“When he asked the Senior GM on what he should do about the items and money”

He tried to hack the game, he accomplished hacking the game, he used it to produce items & gil, with he probably even used in-game. Even if he reported and explained the procedure to SE, he acted against the very rules that he agreed upon to play this game, therefore that account was most likely permanently banned.

Honestly, in my opinion your friend should just pick a new FF14 copy and create himself a new account if he wishes to keep playing it.