Sorry to hear that. You must have known that this day was coming though? Basically you were living on borrowed time from Google. If the revenue was that much of a priority to you, you should have laid much lower than you did and certainly not make threats to people who have no issue with doing fraudulent things.
If you lay down with pigs, you are gonna get dirty
If you play with fire you will eventually get burned
That trusting income from Google is a bad bet?
Or that he should not have threatened the spammer?
With regards to the threat - he did have a valid claim against the guy - he could have complained to the registrar and eventually had the spam domain confiscated.
As to relying on Google, Amazon, Paypal and friends to stand by you when things get tough... plenty of other people have made that mistake in the past.
Often they trust them because they have no other real choice. I'd watch this with more of a sense of 'there but for the grace of god go I'
Being moral isn't the same as being naïve, no matter how much harsh people tell you it is. It is a sign of moral strength to not immediately bite back.
If you lay down with pigs, you are gonna get dirty
If you play with fire you will eventually get burned
etc..