- PayPal cryptocurrency users are reporting being locked out of their accounts after using the new platform
- A Reddit post stated that his trades were considered “selling of items”, leading to his account being suspended
- A Twitter post related to the issue said that there were “hundreds” of others in a similar predicament
Users of PayPal’s new cryptocurrency platform have complained that their transactions are being considered as sales of goods, and their accounts are being locked as a result. The first report of anything untoward was from Reddit user TheCoolDoc who took to the platform to complain that his account had been permanently banned after the platform failed to recognize his transactions as cryptocurrency-related, while a Twitter post claimed that “hundreds” of other users were enduring the same experience.
TheCoolDoc Suffers PayPal Lockout
TheCoolDoc’s Reddit post detailed his experience of using PayPal’s cryptocurrency platform, which only launched two weeks ago, saying that following his execution of several trades his account was flagged as sales of goods:
The system flagged my account thinking I was selling items worth $10000 in one week when I hadn’t done so in the last 6 years I’ve held a PayPal account.
TheCoolDoc got his case escalated, only to find the following message waiting for him to following morning:
After a review, we’ve decided to permanently limit your account due to potential risk. You’ll not be able to conduct any further business using PayPal.
Understandably furious, TheCoolDoc spoke to PayPal again, stating that the assistant “genuinely wanted to help me” but that she was bound by PayPal’s processes in such matters, which don’t seem to have been updated to include cryptocurrency transactions, despite heavily promoting the new service.
As a result, TheCoolDoc now has a permanent ban on his account and PayPal is withholding the $462 in his account for 180 days.
“Hundreds of Others” In a Similar Boat
TheCoolDoc doesn’t seem to be the only one falling victim to PayPal’s lack of foresight. Twitter user @HarrisonReaves, who may well be TheCoolDoc, took to the platform to complain about the “hundreds of others” alongside himself who were being blocked by PayPal after using their cryptocurrency service.
If this number of users are indeed being unfairly blocked, a number that is only going to grow over time, then hopefully PayPal will soon realize the error of their ways and allow all impacted users back onto the platform.