These tournaments (all of them) should probably start having age cut-offs at 18 years old. As in, no younger than 18. At least one of the people involved in this controversy, IIRC, was 13 when they posted some of these comments.
Of course, age shouldn't be an excuse for shithead comments, but I do think that shows some context. A lot of young teens are going to be edgy at that age, they think it's rebellious. We don't have any idea what the kid's home life or community are like, they could enable the behavior :/.
The team 100% deserves to be stripped of the title and probably shouldn't be allowed to officially compete for a long while, I'd just hope they grow up out of what type of thinking led to the comments, and eventually become productive adults with better sensibilities. At least they have the "excuse" of being young teens (at least one of them) when they were saying this stuff which, again, doesn't make it right, but it does provide context.
But seriously though, these tournaments do need an age cut-off, or at least split them into junior leagues for those under 18. Other sports do this; e-sports will eventually have to if it wants to be taken more seriously.