That it works that way in other systems is not a defense of those systems. Rather, it is indicative that those other systems are similarly broken. Upwork has

That it works that way in other systems is not a defense of those systems. Rather, it is indicative that those other systems are similarly broken. Upwork has the ability to vet clients, which the freelancer does not. Therefore, Upwork also has the moral responsibility to perform the vetting of clients. If Upwork views a freelancer as a fraud risk, they can terminate their ongoing relationship with you. They may not require you to return payments for work done in good faith. There are two separate agreements in play here. 1. The freelancer made an agreement with Upwork. In exchange for the freelancer performing work for a client, the freelancer will receive payment by Upwork. 2. The client made an agreement with Upwork. In exchange for arranging for a freelancer to perform work for them, the client will send payment to Upwork. If the client fails to adhere to agreement #2, that doesn't give Upwork grounds to unilaterally cancel agreement #1. Upwork has been scammed, and unless they are claiming that the freelancer was part of the scam, they have no moral right to cancel agreement #1. Edit: In support of this interpretation, Upwork's tax requirements indicate that freelancers must file a W-9 with Upwork, not with the client. This indicates that Upwork is the entity paying the freelancer, not merely acting as a payment facilitator between the client and the freelancer. [0] https://support.upwork.com/hc/en-us/articles/211067918-Tax-Requirements https://support.upwork.com/hc/en-us/articles/211067918-Tax-R...