Best case: Fractional mining ... which is pretty bad. (Only really applies pre-hack)
Let me explain something to you, dyask, because you appear to be conflating the notion of 'fractional mining' with 'fractional banking'.
[...]
So, no, this is not some 'paltry' couple of hundred bitcoin issue, it is a major fraud.
Here's an analogy:
When I go to the liquor store, the vodka is so expensive. What I tend to do is slip 9 bottles under my coat and only pay for just one bottle. That way I get 10 times more vodka for my money. The police call it "theft" but I call it "fractional purchasing".
Using the word "fractional" to describe how you think scrypt.cc only delivers a small amount of the mining they were paid for appears like an attempt to give it some legitimacy, like the vodka thief's use of the word. Why not call it what it really is? If people paid for hashing that doesn't exist that's just fraud, plain and simple.