Need advice: static imploding because of cheater.

[SeiyaSoiya]

This attitude is the reason you're definitely not fit to be a static leader.
You don't just assume the worst of everyone, you're also blaming the world around for it and scrape together excuses that are solely based on assumptions and suspicions when you don't get the pat on the back for a good job.

You should've set rules before and make sure you're perfectly transparent on them. Especially if you intend to enforce zero-tolerance policies without communicating them. You should've communicated with everyone even if your decision was already final. You should've made sure to minimize the negative impact it has on others by finding replacements in time.
And lastly, a good static leader doesn't put their own opinion above everyone else's.
You handed it terribly on several levels and the consequences are well-deserved.

Do I really need to write it into rules "don't cheat"? Do I also have to have a rule saying "don't be racist" or "don't try to hit on the women in the static"?

[Rilifane]

Do I really need to write it into rules "don't cheat"? Do I also have to have a rule saying "don't be racist" or "don't try to hit on the women in the static"?

You have to be clear about having a zero-tolerance policy and kicking the people immediately without saying a word to everyone else, yes. You do. That is part of being a static leader: being transparent instead of just stomping your foot, crossing your arms and doing what you want.
You handed it terribly and what happens now just further proves it.

[Mimilu]

Do I really need to write it into rules "don't cheat"? Do I also have to have a rule saying "don't be racist" or "don't try to hit on the women in the static"?

You just said you didn't have faith in the community because you think it's full of cheaters. (*´﹃｀*)
It's a leader's duty, whether it's for a static group, an FC, etc. , to set up the rules and expectations of the group, otherwise people are just going to assume they can do what they want or that you don't care about those things.
For example: Parsing. Is parsing fine in your group or is it cheating? Even though it's against ToS, it's a gray area in XIV community at large, with most raiders opting to use them.

[RobynDaBank]

Do I really need to write it into rules "don't cheat"?

Yep, you do. Because when interacting with others in the static-finding/recruiting community, you'll find that callout AddOns or the like are "normalized". That's why it's the norm to use them/not care if someone is using them, and unusual to ban their use. Parsers and logging are must-haves in the raiding community for instance.

[Ath192]

Do I really need to write it into rules "don't cheat"? Do I also have to have a rule saying "don't be racist" or "don't try to hit on the women in the static"?

Yeah, you absolutely need to write into the rules "No third party tools, zero tolerance". These are common enough that this information would in fact be necessary for many people to decide to join your raid group or not. They are against ToS but if you read the room that is FFXIV their use is extremely widespread. So much so, that in any given PUG group in savage you can pretty much be certain at least one person is using something. Be it a parser or a cosmetic mod. Same with statics I'd wager.

[ZephyrMenodora]

Yeah, you absolutely need to write into the rules "No third party tools, zero tolerance". These are common enough that this information would in fact be necessary for many people to decide to join your raid group or not. They are against ToS but if you read the room that is FFXIV their use is extremely widespread. So much so, that in any given PUG group in savage you can pretty much be certain at least one person is using something. Be it a parser or a cosmetic mod. Same with statics I'd wager.

Hopefully this is the lesson learned from this.

Being clear about rules in advance will save a lot of headache, and investing in team members who aren't a fit.