Subodh: I am not saying that I approve of what the freelancer did. I am pointing out that he is offering you $200. I would personally take the money and move on.
I use Upwork primarily as a freelancer, but I am also a client. As a client, I have hired over 100 different freelancers on Upwork.
I have a very mercenary mindset as a client. I advocate that clients put themselves and their projects first. I consistently tell clients that they are not obligated to mentor freelancers or teach freelancers a lesson. When a freelancer seriously disappoints a client, I believe the client should stop working with the freelancer rather than trying to reform the freelancer.
The freelancer you hired copies source code and removes copyright notices. I don't approve of that. You don't approve of that. But nothing you do is going to change that.
So my advice is to take what you can get out of the situation and end things as quickly as possible with that freelancer.
