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PayPal Holding Funds and Blacklisting for Crypto / Coinbase

temp20210319c
New Community Member

PayPal Holding Funds and Blacklisting for Crypto / Coinbase

Background on my PayPal activity:

 

About 2 weeks ago, I decided that I was going to sell off some of my personal childhood Pokemon, Yu-Gi-Oh!, and NBA cards on eBay. To date, I've already completed 15+ sales. Even though PayPal decided to immediately limit access to funds as I was a 'new account', all of my sales have been shipped through Canada Post within 1 business day of payment and all tracking numbers have been updated through PayPal just as promptly. I understand that PayPal releases funds after delivery and have literally zero concern about that policy. My eBay username is adwigh62, account created 01/27/21, and to-date I have had no neutral or negative reviews on eBay. I have not reached my 'selling limits' on eBay and my account is in 'Good Standing'. In addition to eBay, I also use my PayPal account as an intermediary for transferring cryptocurrency to CAD (via Coinbase, which literally only gives me PayPal as a withdrawal method and from there I transfer to my bank). 

 

About 4 days ago I received notice from eBay that my account had been limited pending further documentation because my 'account activity had significantly changed'. I'm assuming because I withdrew approximately $2500CAD via Coinbase to PayPal to my bank across 3-4 transactions varying in size as I needed the money. PayPal requested more information from me, including Photo ID, Proof of Fulfilment/tracking information, Proof of Supplier, etc for a list of transactions. I uploaded Photo ID and then just assumed the transactions would be related to eBay as I was a new seller and has sold cards in the $400-500 price range; sometimes higher. Instead, the transactions in question were all from Coinbase, received from 'CB Payments Ltd'. I tried to explain that I couldn't provide 'tracking numbers' or proof of 'supply chain' for cryptocurrency transactions and reiterated very clearly to the gentleman on the phone that I was using PayPal as an intermediary for cryptocurrency in addition to trading card/collectible sales on eBay. He did not care and said I needed 'proof of fulfilment' for the cryptocurrency transactions as well. I made a smart comment to him that Bitcoin isn't a physical coin that you send in the mail and I think that offended him because he said he would be 'leaving his notes'.

 

The next day (today), I get a text from PayPal saying that my account has now been permanently restricted. I can no longer send, receive, withdraw, etc. Currently I have close to $4,000 CAD locked up in my account that I can't touch until a '180-day resolution period' has ended. When I called, I reached Wendy who gave me an answer that 'after a thorough review it was concluded by the back-end team that my type of business activity isn't preferred on PayPal' and when I asked her if she was talking about eBay or Coinbase she couldn't answer me. I explained to her that Coinbase literally only lists PayPal and a withdrawal option and that millions of people must use this every day. The same goes for eBay where as I mentioned, I have a clean slate account and 100% positive feedback. I asked to speak to a Supervisor and after being put on a 10 minute hold I was told by Wendy that a Supervisor was not available and that the 'matters of my account can no longer be discussed over the phone'. 

 

As it stands, eBay still has $3,800 CAD of my money. $1,400 CAD is a transfer from Coinbase to PayPal and the remainder is from sales on eBay that have all shipped and been updated with tracking information. Hell, some of them have ever delivered and I've received reviews for them.

 

If anyone has any guidance at all or if anyone knows anyone at PayPal that knows anything at all about cryptocurrency please let me know.

 

Thank you,