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It's in the credits, if it's a free asset and he has permission, which rules does it violates?

The sprites were made outside of the time limit. Rule 2: Game must be made entirely within the time frame

Yeah that's true, although rule 3 says:  "Games can be made using any language, game engine, or free assets." So I think it's fine for the assets, as long as the game itself was made in the time frame, but it isn't too clear.