So if I start a DDF username JuniorCountValentine and try to do business dealings with DDF members, based on the reputation of CountValentine, and it turns out that I am a swindler. Did the real CountValentine suffer any reputational damage?
I don't know Israeli law at all.
In America you can 100% get a reward without proving any damages.
Punitive can be for committing fraud with their name, which yes he 100% did do explicitly. If he enriched himself to the tune of $10mm thanks to their name it's totally resaonable for a jury to award the family a $10mm punitive award or much more because it was gained through fraud.
Also for reputational damage - if the Leviev business has spent let's say $100mm on ads for their company or spent $1mm on PR firms in the past then the damage he caused can be proven to be worth whatever amount they have spent on trying to make reputation better.
Again this is my understanding of American law, I don't know anything about Israel.