I'm not going to tell you whether it's right or wrong.
I believe you should think consciously about your own ethics. What is the basis for you thinking that something is wrong and something else is right? I think people should not rely on other people's opinions regarding what's wrong and what's right, they should have their own. (This doesn't mean you shouldn't listen to other people and potentially learn from what they have to say. Fair enough you ask this question and get some views, still try to get yourself up to the point where you have a well founded view on this yourself.)
The bigger picture here is how you think society as a whole should work and what role science should play in it. What are the implications of plagiarism, and of somebody getting a degree based on plagiarised work? Could it be a problem for society? Or at least for some people (such as those who later employ the plagiator based on their degree, or those who don't win a position because a competitor has plagiarised and looks better on paper than they actually are)? How important is this to you?
More generally you may ask yourself whether and why you think that we should generally "play by the rules" (or not)? To what extent does it depend on the specific rule, or on who enforces them, or who benefits from it, and who is maybe disadvantaged by it?
You may also ask yourself about your ideas on solidarity and relations between students. Do you see the students as a group of people that should generally help each other, also against authorities who by marking them may determine their future fate to some extent? On the other hand, you may rather have the view that ultimately students compete against each other, and the best ones should "win", so solidarity should definitely not go as far as helping others to achieve better marks than they deserve (you may also think about who, in your view, really "deserves" what for what reason, and whether you think the the marking at universities is fair in this respect, or what would make it better, or worse).
And then you may ask yourself about whether generally standing in for your ethical principles is valuable also in the face of potential backlash. You can expect that people won't be happy if you do something that damages their position, so if you so something like this there is always the chance that you get a hostile reaction. Do you think it would be worthwhile avoiding it? Why or why not?
There are probably even more aspects of this. In any case I'd like to encourage you to train your own judgement and to learn how to use it confidently.