Forget CC fraud. This opens up liability for IP theft. Even if the other company doesn’t win the case it is going to create a shitstorm that might potentially give them free PR. “Look our new product is so good their devs are reverse engineering our innovation to copy us”
Forget what this person found out. Going and unpacking the app and using private APIs itself was a dumb move regardless of what happened after. People can be idealistic and talk about intent but it really is a bad move that opens all kinds of liabilities.