[myself248]

Yup, they froze the Neo900 project's funds and caused them to miss a bunch of supplier contract deadlines: https://neo900.org/news/paypal-trouble-delays-project

Basically killed the project. It's still sortof moving, but a shell of what it once was.

PayPal's size allows them to dictate terms like "We'll screw you worse than a bank but you can't sue us like a bank", and nobody's been able to take them down yet.

One can only hope.

[tgtweak]

They've screwed countless group buys by locking the organizers account and freezing funds after "detecting" unusual spending (ie receiving money from a bunch of other users in a short period of time). Same thing happened to a friend organizing a group gift for another mutual fiend. Unethically, PayPal kept receiving funds to the account after they froze it.

[KozmoNau7]

They screwed over Something Awful as well, due to a fundraiser for the victims of hurricane Katrina: https://www.somethingawful.com/news/paypal-fiasco-summary/

They simply froze the donated funds and kept them in limbo while forcing the operater of SA to jump through ridiculous hoops in order to unfreeze the money.

Don't use Paypal for any sort of fundraiser. Ideally never use Paypal for anything, ever.