I traded some ethereum for usd via paypal on localethereum.com . I got payment as well however after I released all my ethereum to the buyer, he or she quickly started a dispute for an unauthorised transaction and all my funds were placed on hold. It was a merchant account, so I was only eligible for seller protection if I uploaded the invoices and shipping confirmations. However this was never a shipping kind of transaction. I only had chat message screens from localethereum confirming that I have released him/her my ether only after I got payment. I also messaged paypal about this. I lost it. PayPal returned all the money to the buyer and gave me a reason which stated I didn't upload information as stated. The buyer used the system to fool me. I don't know how many of you all here have been fooled the same way, but this really makes me think I cannot make payments by paypal for digital currencies because seller protection eligibility is not designed in that way. Any help would be really helpful. Thanks 🙂
