In the grand scheme of things, this doesn't mean much. There's no shortage of people with four years of high school wrestling and possibly some college competing at white belt level in competitions, especially in nogi. But still, seems messed up for the other competitors, especially at an event like this one.
As for the coach's excuse, I'm throwing the BS flag. If that kid couldn't afford a belt and was just using the blue since it was a hand me down, where did he get the money for his white belt for this competition? His supposed hand-me down gis seem pretty nice as well. Finally, how did they afford to get to UAE? I know Kazakhstan isn't necessarily far, but I doubt they drove. And hotels definitely aren't cheap there. Too much wrong with the coach's story for me to believe him.