[giancarlostoro]

I agree. Unless there is an actual law telling them to hold the cash. I would let go of it. Cut out future transfers as you said. Why PayPal like companies can just steal cash like that is beyond me. They should be legally liable for the laws broken if they keep someone elses cash.

[stouset]

If this is an OFAC case, which anyone who’s worked for a financial institution can tell you this sounds like a dead ringer for, there is literally an actual law requiring them (both JP Morgan and Square) to withhold the funds.

None of the companies involved even actually get to keep the money IIRC as it’s eventually handed over to the US government. Everyone involved would almost certainly love to save themselves the headache and bad press of this situation if it were at all possible.

When there’s an article about PayPal, Square, or any other financial institution holding on to some person’s cash for vague, inexplicable reasons and refusing to hand it over, the reason is virtually guaranteed to be OFAC. They can’t turn over the funds and they can’t even explain why they can’t turn over the funds without someone facing potential jail time.