Bungie is far more likely to ban you for "naming and shaming" than they are to ban the cheater. To put it bluntly, the chances of the cheaters getting banned are roughly .1%, even if you have video proof and a written confession. Bungie doesn't generally ban cheaters. It's so rare for a cheater to get banned that cheaters have grown so confident they won't get banned that they are willing to brag in youtube videos or even in these forums about how they are cheating. If that cheater is a youtuber, or twitch streamer, then the odds of them getting banned drops to 0%.
Pathetic as it may be to say, you're better off just ignoring the cheaters. Report them via the in game feature if you can, but otherwise, ignore them. Bungie will not ban them, but they will ban you for pointing them out.
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Do we know why they refuse to address cheaters? Their reason?
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We can only guess. While I don't generally like making assumptions, I genuinely believe it's due to desperation thanks to the already low player count. D2's daily player count plummetted very quickly at launch and Bungie/Activision needs a high player count to show investors. If Bungie starts banning all the cheaters, that player count will drop even further and they risk losing investors. Of course another theory I like is based on Bungie's desperate attempts to relive their glory days of Halo pvp. Vanilla D2 was balanced around crucible, not pve, and most of the exotic quests involve crucible or gambit. Bungie wants to relive their glory days and to do so requires players to actually play pvp. Bungie are trying to boost the number of daily crucible logins so they can get that high back, and banning cheaters would make that number drop.