As stated mIRC is just another IRC client that connects to a server, and Khaled has nothing to do with the servers either. I don't think bringing it up with the IRCops will do much good because they really aren't doing anything wrong in my opinion anyway.
It becomes illegal when paedophilia type pictures are being sent/received across the network. In any case that individual was probably just joking around and you can't do anything about that. Sadly there is quite a few idiots like that floating around networks. As a side note, it's up to the channel owner to keep in/out whoever they want. And anything goes in their own channel, providing they keep to the networks rules.
