Stolen credit cards are a problem for the merchant because the charges could be reversed by the bank and merchant will incur the loss.
I don't see how that is even remotely possible with Crypto. How did Steam lose money ? My guess is they might be accepting it through some payment provider (so not a true crypto) who has in their T&C to be able to reverse transactions (which must be happening in Cash on the Steam facing side).
It might not necessarily be that they lost money, it is possible it happened through the way you are suggesting, but opening up for crypto does mean Steam becomes a money laundering platform.
Criminal creates a shit game and then uses the crypto to buy that game (with alt accounts) and since *very* few developers would be happy with getting paid in crypto, Valve has to convert it into fiat(?) currency.
That could be a problem but then that would be money laundering not fraud (and Steam won't be on hook for it - just like Amazon isn't for its gift cards).
The purchases are fraudulent. A single party buys the game from themselves many times, desiring to look like a diverse crowd making legitimate purchases.
Yes they were using the BitPay provider when they were accepting Bitcoin, I assume they were made aware of that it was possible to track the transactions back to fraudulent credit card transactions, which I guess in some way could still make them liable for it.
> Another thing was that the vast majority of those transactions, for whatever reason, were fraudulent, where people were repudiating transactions or using illegal sources of funds and things like that.
Seems like it was multiple things and "fraud" is just a catch-all term and Gabe didn't bother to list everything that they considered to be fraud.
> Stolen credit cards are a problem for the merchant because
Because they don't want to process illegal transactions with illegally acquired money, because they don't want to abide or facilitate criminal conduct, wherever possible. Life and business is not merely nor always about the potential to lose money through legal ramifications.
I don't see how that is even remotely possible with Crypto. How did Steam lose money ? My guess is they might be accepting it through some payment provider (so not a true crypto) who has in their T&C to be able to reverse transactions (which must be happening in Cash on the Steam facing side).