The terms of service have been updated to prevent this from being a problem in the future. However, Andrew still needs to pay these people who were legitimately using his service under the old Terms.
1) There is no significant difference between those versions of terms in the context of this dispute.
Please point out the following from the old terms:
a) which part of the Terms they broke
b) which part allows you to keep the bitcoins for yourself
2) I had reason to believe the banners on websites they controlled were generating false clicks.
Was that against the old Terms?
3) I banned those accounts according to standard practice.
That doesn't revoke your obligation to pay them any funds that were pending.
4) The customer and I were not able to reconcile those differences at which time he illicit's personal friends to a) create a public thread complaining about the issue, b) defame my reputation, c) cause my service significant financial loss, d) he did not then or now use his own advertising service on the dailybitcoin.org website or any other service to replace BitcoinAdvertisers.com banner ad hosting service.
Now you're just pulling a bulanula.
5) Without due diligence or recourse forum moderators judged my service to be guilty without hearing counter arguments.
We absolutely heard your counter-arguments! In fact, I would have personally been just fine with you refunding the advertisers instead of paying these guys, despite the fact that no court would agree with me (they'd tell you to pay these guys, no exceptions).
6) The threat of seizing partner account funds is there to warn publishers to not try to game the system and we have had a lot of people try this.
And I don't disagree with this at all, which is why I'm glad that you've gone ahead and updated the Terms so that all parties are aware of this.
If I can make any recommendations to the moderators of this forum it would be to not take sides in a dispute between members. You say you are all about free speech and I now know that to mean that trolling, defaming, and insulting forum members and financial contributors to this website is a forum standard practice. I have had something like 40btc worth of ad space on this forum and because of your actions I will not be purchasing ads here in the future.
Our whole job in scammer investigations are to take a side, but in a fair and unbiased manner. I knew none of the people involved in this dispute, so I feel that I fit the role (note: this investigation is still controlled by tysat until/unless he transfers it to me)