PayPal Bans User for Trading Crypto in a “Misunderstanding”

PayPal Bans User for Trading Crypto in a “Misunderstanding”

By Abhimanyu Krishnan | News | 26 Nov 2020


Paypal has suspended a user’s funds because his cryptocurrencies trades were misunderstood to be item sales, according to the user, who posted the grievance on Reddit on Nov. 25.

  • Reddit user TheCoolDoc said he bought $10,000 worth of crypto within a week, half of the buy limit that PayPal had increased; each transaction was worth less than $500
  • The system recognized the transactions as item sales, as opposed to crypto purchases -- though the user did label the transactions as “crypto purchases”
  • PayPal treated the transactions as suspicious activity and has permanently stopped services for the account, which had $462 dollar at the time it was frozen
  • The user has attempted to sort the matter out with a PayPal representative but the firm claims the decision is final
  • One other user claimed that he experienced the same problem, saying that repeated reminders on Twitter resulted in the ban being removed
  • PayPal has seen a tremendous surge in interest after it announced it would support cryptocurrencies; the service is currently only limited to the US, but will be made available globally in 2021

Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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