I don't understand. Didn't he use Stripe Connect? All the accounts are then siloed out and have to pass KYC. Is it just because he let them keep selling knowing full well that they are doing something sketch?
In Flurly's blog post, Flurly said the legacy payouts used stripe connect and other methods. And from Stripe (Edwin's) reply above, it sounds like Edwin is implying that this particular situation did not use Stripe connect.
From the Stripe response upthread, it sounds like they weren't using Connect, just vanilla Stripe.