The thing is, upwork in this scenario did not vet whether client was the actual owner of the card he was using to pay creators, this is a fault in upwork's frau

The thing is, upwork in this scenario did not vet whether client was the actual owner of the card he was using to pay creators, this is a fault in upwork's fraud detection algorithm, their freelancers should not have to pay the penalty for this. Upwork takes a 30% cut (or lower, depending on your income on the platform), they are taking this cut, to create a safe and trust-able environment for its users by verifying both clients and freelancers. Considering this incident is a lapse on their end, the penalty should be paid solely by them. If doing so means they will go bankrupt, it just shows they failed as a company to create a safe enough platform to justify taking that 30% cut.