Remember that game they wanted to get UT to play? Just gave them the easiest of outs...even if it was never going to happen. I don't imagine the Big 12 would expel them (or even could) but I do wonder what penalties they could even impose. This is literally akin to MLB allowing Pete Rose to keep managing after getting busted betting on his own team.
The Big 12's options also could include an interpretation of league bylaw 3.6, which allows the conference autonomy for discipline such as "prohibitions on appearance in postseason events or televised events, restrictions on revenue distributions and limitations on recruiting or scholarships."