Yes. So? Gold alone doesn't recruit an army, soldiers don't pop out of thin air. And family coffers eventually deplete themselves. As long as there weren't any multies involved (which honestly would seem doubtful to me, but I don't know much of the situation), I don't really have a problem with families massively funding realms. It's not a limitless supply, after all, and someone somewhere is paying for that support.
You
are unaware then. They discovered an exploit where they could raid their family gold via visiting the aunt and sending the gold away or into a guild/temple and drop it to incredibly low levels. The game then immediately began auto-replenishing the family gold to get in the neighborhood of a thousand gold. How many of them were multis is unclear, as the situation was and is quite tangled, but the system only worked because they had a /lot/ of new families starting with their family home in Thulsoma, so make of that what you will.
In other words, using brand new families they managed to scam several thousand gold out of the game and didn't even lose any honour because they went through the visit the aunt feature. The exploit was closed, but that got them a lot of gold to play with, and combined with various other schemes (starting a new character to get the starter troops, then pause/delete and start a new character to get starter troops as an example) got them an army several orders of magnitude larger than they could have had otherwise.
