ReadWriteWeb also contacted Digg to find out their side of the story - we have Digg's response below too.
So why was Saddler banned? It wasn't associated with the recent bannings of other digg users over using Greasemonkey scripts. Rather the ban was handed down after Saddler submitted a website which was, in the words of an email Saddler received from Digg, "spam and a solicitation of products and/or services".
We sought a response from Digg on the banning, since Zaibatsu was a high ranking user who had seemingly put in a lot of effort and work into the community.
So Digg's position is clearly that Zaibatsu has a history of TOS violations, not just the latest one.
What Got Zaibatsu Kicked Out
We don't know the previous violations, and Digg wouldn't discuss details because they told us they're "unable to comment on the specifics of this or any case given that we try to protect the privacy of our users".
Nevertheless, let's look at what the final straw regarding Zaibatsu was. The digg submissions in question, and there were two of them, were photos of a female digger. Although these submissions are no longer on Digg, the following titles give you a good idea of the content:
After learning of his ban after those submissions, Saddler told Digg that "I didn't know that a picture of a female digger was against the TOS. I didn't even know that she was selling something on the site.Source : ReadWriteWeb