I was a friend of Basiah's probably same as you. However his reputation for leveling accounts then getting bored or pissed off at the game and hocking them puts him in a category where shit is going to keep happening to him.
The T-staff was given to him to play a monk for the guild. He was going to hock the account so why let him hock the gifted t-staff along with it knowing the price range of t-staffs (especially at the time when there were only a couple).
All I will say about it is that if I were in Lite's position I would have much rather seen Sickpuppy steal the staff back and hoard it on his guilded alt, then have Basiah sell the account with the tstaff.
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