sjess knew full well about the flaw and deliberately tried to steal investor funds.
"steal" is overstating it. He played according to the rules, on a biased wheel. That isn't theft. He worked out how to win your game, and played it to win. It's similar to blackjack players using card counting techniques to win at blackjack. They're not stealing either.
anyone who takes advantage of any software flaw will have their entire account balance seized.
This wasn't a software flaw. The software was performing exactly how it was designed to perform, and exactly followed the provably fair algorithm laid out on the site. The game itself was flawed in design, not the software.
As a side note to the posters in this thread who have mentioned that some casinos would pay out even if they knew the player took advantage of the system.
There is no casino/sportsbook, live or online, that I have played at or been in that would pay a player who done this.
Every casino will pay out players who win by counting cards at blackjack. That is taking advantage of a 'flaw' in the game, and they always pay you out. If you do it too much they ask you to play "a different game", but they don't refuse to pay you.
11.5.3 an "unfair advantage" shall include, without limitation:
11.5.3.1 the exploitation of a fault, loophole or error in our or any third party's software used by You in connection with the Services (including in respect of any game);
OK, but this wasn't a flaw in the software. The software was performing as designed. The game itself was messed up.
4.2 bet365 reserves the right to close or suspend your account at any time and for any reason. Without limiting the preceding sentence, bet365 shall be entitled to close or suspend your account if:
(b) bet365 considers that you have used the Website in a fraudulent manner or for illegal and/or unlawful or improper purposes;
(c) bet365 considers that you have used the Website in an unfair manner or have deliberately cheated or taken unfair advantage of bet365 or any of its customers;
None of that seems to apply in the sjess case. He didn't cheat. He played the game as described on the website, following the rules. Your game was +EV, and so he made a profit. If anyone was acting "in a fraudulent manner" it was the site, claiming that the 50% lo game had a 50% chance to win. It didn't.