This is a fraud website which has mercilessly ripped off content from other sites and published as its own. Also it has published a ton of proprietary information from time to time. Good riddance!
Do you have any citations for these claims? Not calling you a liar or anything - I'm just not at all familiar with the site in question, and it seems like it'd be important evidence if we want to fairly judge paypal's behavior here.
If you don't believe that, than take my word. I'm an infosec reporter and had countless articles end up on that site. News sites often report on the same topics all the time, but there's a difference between running a story on the same topic and copying the text and replacing some verbs and nouns with a synonym, and then switching sentence order to pass it as your own. Every reporter has his own way of structuring a story. It's pretty obvious for us when someone steals an article, based on how you present information points and which information points from a —let's say 50-page academic paper— you decide to present. Many times, information I obtained during private email or phone conversations would also end up on their site. When I confronted the "CEO" (aka site owner) he said he found that information using Google (obvious lie) and replied with insults. They kinda stopped copying my articles after I called them out a few more times on Twitter, but I don't believe for a second they're now doing actual news reporting.
I have other reporter friends who'd tell you similar stories and interactions with their staff. At one point someone tried to organize a campaign where all reporters would call out The Hacker News and Security Affairs (another site engaging in plagiarism) on Twitter, and urge security researchers to stop sharing links to their sites, but that didn't materialize because some of the bigger names in infosec journalism didn't wanna participate. In hindsight, it was kinda silly (childish would be a better word), but this only shows how many news sites TheHackerNews has angered in the past few years. They're absolutely despised by most infosec news reporters and I know at least two people who are now opening a beer in celebration.
Perhaps they are, but then they should be sued out of existence or left alone if what they do isn't ilegal. That is far preferable to a world where giant, unaccountable corporations act like police, judge and executioner.
Maybe they are getting sued or under investigation and PayPal dedicated to kick them because they got subpoena to testify or similar.
And these scary letters from gov will sometime clearly state what SaaS provider needs to answer when person ask "why I'm banned". Sometimes, the court or investigator will explicitly ask not to ban user and they can ban user only after investigation is finished (or grand jury makes decision if it is something more complex).