A while back we reported that Coinbase was allowing their users to withdraw their money from Coinbase directly to their Paypal account with zero-fees. We actually reported this about a week before Coinbase publicly announced the news.
The response from the community was extremely positive in the beginning. A majority of the community was actually waiting for Coinbase to allow zero-fee withdrawals to their Paypal accounts.
Things didn’t go as smoothly as everyone expected.
A few users commented on Coinbase’s twitter thread saying that their accounts have been frozen with no prior intimation. Some of the reasons include “money laundering” has been stated as the cause for freezing accounts.
Moreover, the users’ accounts with their funds have been reportedly blocked or frozen for a massive 180-days.
Irish Girl Cryptocurrency tweeted:
“Paypal was linked with you before I was click baited into making account after reading you could use paypal! It was only for withdraws This is the reason I tried selling crypto on #Paypal which they banned me for life before Chrismas last year! No warning, no appeal, Frozen $$$”
How does one of those emails look like? See the picture below:
According to the email that Paypal sent out to users who were affiliated with Coinbase, your account
- Needs to be “approved” by receiving prior authorization
- You must accept their policy regarding crypto exchanges.
- If you don’t follow the above, your account will be frozen for 180 days.
Now this isn’t the only reasons that Paypal can freeze your account. Paypal is known for freezing users accounts for no reason and holding their money up to 180 days.
From most past users of Paypal’s experience, Paypal will not restore your account even after the 180 days, but most people were able to withdraw their account balance from Paypal after the 180 days.