how would criminal activity be dealt with in a stateless society?

[Money2Burn]

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As for the response detailing the establishment of a security firm with required membership among the citizens for protection: How is requiring people to pay for protection then punishing them with violence a better alternative to government taxing people and providing law enforcement? Seems to me like the only difference is the former is much more susceptible to power abuse and corruption because there's nothing to keep the power of the security organization in check.

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I'm pretty sure that guy was sarcasticly trying to point out that a stateless society would evolve into a state by that response he effectively described what states do.