@ignagnid Yes, report them! Some new homeowners might be duped into paying her because they didn’t thoroughly read the THS website, terms and conditions, rules, policies, etc.
Personally I find this hard to believe. That they got as far as paying $99 or more and don’t know how the site works and didn’t notice there is no mention in any listing of money is not the level of attention to detail you would want in a sitter anyway 
Did they have no reviews as well? Please do report them.
Didn’t realize this was “2 years later” But the advice holds for anyone facing this situation:
If you are feeling uncomfortable – and you should – feel free to “unconfirm” her. You can do this easily. You can let her know briefly that “under the circumstances” you don’t feel comfortable moving forward. Then repost your listing and find someone else. You can also get help here with your listing.
Doesn’t matter whether she knew or not. It’s not your responsibility to figure that out. THS can at least monitor the sitter in case any other complaints arise. And for all you know, they’re repeated offenders who are already being monitored.