It turns out that Butler's previous ID was deactivated http://forum.blockland.us/index.php?topic=255774.msg7440546#msg7440546
IIRC, Butler has had 3 BLIDs.
First, it was his own BLID, which he then lost sometime, was then granted another by Raiden21. Raiden got that key from Raven and friends I believe, and Betel was still using that key to do more spamming, still having access to it. And now his latest ID being a Steam ID. Butler had nothing to do with Betel. However, I did warn him about it, even though someone convinced Raiden it was fine to use, I didn't believe it. Butler either ignored me, didn't believe me, or took the risk, therefore losing the ID when Badspot de-activated them. Butler was also aware his name was changing at random after Betel's spam runs with that key.
This is all I can remember from the event, as I had a few hundred things to do.
tl;dr, Butler lost the ID because he was given it indirectly by Betel/Raven and they were still using it to spam.