Block every user thinking that I'm hosting something on Destiny? Sorry but that is a little excessive. Blocking Bob and Joe? I have already blocked the users in question years ago. That won't stop them from misleading others to harass my friends and I.

Seems like the only course of action is to either have Microsoft take action on their account or the serious route of taking legal/police action by filing a report for cyber crime impersonation/fraud/harassment. Now for the latter option you'll need to keep a detailed log of every offense and event that occurs. Make your case as best as possible. If the police decides to do anything they'll contact them and ask they refrain from contacting you in any way and harassing. If they continue you can file a restraining order. This is the extreme route and hopefully it doesn't come to this. Good luck guardian.