@Cratoon, if you are completely certain that he abused your system and can prove it than you don't owe him anything. If he cheated why are you offering him a $100? Just lock his account.
If you can't prove he was cheating, you have to pay him in full or at least talk with him and try to reach a compromise.
Also, can you, please, explain what do you mean by this:
Well if you haven't deposited anything, you haven't lost anything either, innit?