I personally think there is more than just one aspect here. Plus I believe we're not getting the fully story.
Yes, what this guy is allegedly doing is wrong. He cheats at university, and he seems to cheat the people he hires (OP clarified this in a comment to his post). And still we're speaking about two very different things.
In the latter case, there is a contract between him and the hired person (the "dev", as you said). Even if there is no written contract, there will be other evidence supporting the contract. So he could sue him. But here is one thing I find a bit strange: if I was ordering such work with the purpose to cheat, I would be much too scared to not pay the bill since the dev could rat on me. If this thing would even go to court, my career would be over. Why risk it?
Anyway, for the sake of argument, let's assume that the dev is not going to take any action for whatever reason. The next question then is: how did you find out that the guy is cheating? From the way you describe it it sounds as if he confided in you. I mean, it's a bad thing to cheat alright, but how is misusing a friend's trust any better? I wouldn't want to have business with any of you.
I would agree with what the user O.R. Mapper wrote in a comment to your question:
"I don't see myself as the enforcer of other's morality, and find it
good policy to focus on my own life and shortcomings" - as often in
such questions, it's not (exclusively) about enforcing anything
towards others, but about making sure that your degrees and
certificates are not devalued by granting the same degrees and
certificates to fraudsters.
Frauds will be exposed for what they are, sooner or later, be sure about it. I know of people having had their degree revoked even 10 years after they graduated because fraud was discovered. And frankly, with this guy cheating even on the people he hires, it will be sooner rather than later for him.
If this guy is your friend, make sure he understands that you disagree with his actions and, as a last resort, break up the friendship if he won't stop it. I just don't see it in your responsibility to tell on him.