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PayPal Freezes Cryptome's Account

Posted by kdawson on from the gov-com-business-model dept.

grimwell sends in the news that after Cryptome's little run-in with Microsoft and NetSol, the activist site has now had its funds frozen by PayPal. Cryptome founder John Young notes, "Google lists thousands of instances of this asymmetrical high-handedness." "We have reviewed your PayPal Account, and due to the excessive risk involved, we would like to begin parting ways in a manner that is least disruptive to your business."

13 of 253 comments (clear)

  1. What's a Paypal? by symbolic · · Score: 5, Interesting

    I have, and will continue to, refuse to conduct business with online entities that do not support a non-Paypal option. I have never used Paypal, and I don't anticipate that this will change.

    1. Re:What's a Paypal? by Anonymous Coward · · Score: 1, Interesting

      That's because of (gasp) government regulation of the wire transfer - in the EU (well, except particularly retarded bits) banks are required to support IBAN transfers for a few pence (technically it's "for the same price as purely domestic transfers", but they'd price themselves out of the market rapidly if they tried to charge much there). They aren't required to advertise the fact they support IBAN transfers, but everyone knows about it by now.

      http://en.wikipedia.org/wiki/International_Bank_Account_Number
      http://en.wikipedia.org/wiki/Single_Euro_Payments_Area

    2. Re:What's a Paypal? by ShieldW0lf · · Score: 2, Interesting

      Inasmuch as they rely on PayPal, the fault lies with Cryptome for allowing PayPal to take over responsibilities that they could not be trusted with. They should have planned things better. Groups whose goal is to increase their capital cannot be trusted. In the end, they will always take more than is justified, scorch the earth behind them and bring your plans to ruin.

      --
      -1 Uncomfortable Truth
    3. Re:What's a Paypal? by DarkKnightRadick · · Score: 2, Interesting

      No kidding. lol

      It's all good though. This is a good discussion (for the most part, I've been reading some other threads on this article) and I might wind up sourcing it for a future blog post (or possibly not, my audience also tends to include kids who don't need to see the objectionable language used by some).

      The law that PayPal used to stop doing business with Cryptome is junk.
      The reasons that PayPal used to stop doing business with Cryptome is junk.
      The freeze on Cryptome's assets (aside from the refund of those donations) is junk.

      My one and only point has ever been that PayPal (and any other business) is free to do (or not do) business with whomever they wish.

      I will not be doing business with PayPal after I pay them what I owe.

      I will not be doing business with Google Checkout (for unrelated reasons). I will, however, be accepting submissions for other online payment processors (mainly looking for a tip jar right now).

      --
      "There is a way that seems right to a man, but its end is the way of death." Proverbs 16:25 (NKJV)
  2. Oh great. by Cow+Jones · · Score: 2, Interesting

    We just donated a few weeks ago... I really hope that money doesn't end up in Paypal's pockets.

    --

    Ah, arrogance and stupidity, all in the same package. How efficient of you. -- Londo Mollari
    1. Re:Oh great. by RichardJenkins · · Score: 2, Interesting

      Can Paypal earn interest on it in the interim?

  3. When? by Anonymous Coward · · Score: 1, Interesting

    When will someone come out with a viable competitor for PayPal so that we will finally have a choice?

    1. Re:When? by pla · · Score: 5, Interesting

      When will someone come out with a viable competitor for PayPal so that we will finally have a choice?

      A viable alternative already exists - Just use your bank as a CC payment processor.

      My father runs a small business (under half a million gross per year), and about two years ago discovered that his bank would handle everything for a quite reasonable fee - About the same as he previously paid just to take Visa, and, as a bonus, he can accept the dreaded American Express (as well as just about any major CC) that so many small businesses refuse to touch (meaning he can accept corporate and government business, which tend to use AmEx almost exclusively).

      If you expect mostly a lot of very small transactions (such as a typical web site "tip" jar), that model might not work so well. But if you sell anything best measured in "dollars" rather than "cents", it seems like a no-brainer.

  4. Paypal and fraud... by hadesan · · Score: 5, Interesting
    With heightened visibility comes more scrutiny. Paypal and their more shady customers probably don't want anymore light shown on their activities. Better for paypal to dump cryptome to protect their "more lucrative" albeit more less forthright customers...

    Here is a lovely site for some light reading... http://www.paypalsucks.com/

    Also an interesting story on a new scam in Boston on a scam using facebook, twitter, and Paypal http://www.boston.com/news/local/breaking_news/2010/03/6000_fall_prey.html

  5. Strategic Attack On Banks? by DustoneGT · · Score: 4, Interesting

    There was also a recent story about a blogger who had his Citi account closed because he was controversial. Could this be a new trend? Could there be a back story here? I mean law firms of the big players might threaten to sue the bank of an enemy to make life difficult. Let's call this BLAPP, Banking Lawsuit Against Public Participation.

  6. Donations only service by zogger · · Score: 3, Interesting

    I don't want an alternative to payapl to buy stuff, because plastic cards work for that or postal money orders, that's the existing alternative, but an online "donations only" service, so it could be used for micro or "minimal" payments would be interesting. Something with a much smaller transaction fee, and geared to only non profit orgs to receive funding. The service itself could/should be a non profit org as well.

  7. Alternatives? by Reverberant · · Score: 1, Interesting

    I have, and will continue to, refuse to conduct business with online entities that do not support a non-Paypal option. I have never used Paypal, and I don't anticipate that this will change.

    I know people hate PayPal (and for good reason), but there is one reason why I continue to use PayPal for my web sales: the PayPal debit card, which means that I have near instant access my my received funds. It works great for me since I sell physical products, so if my cash flow is low, I can take the money from an order and immediately use it to purchase more inventory. I have Google checkout and Amazon Payments accounts that I can use for backup, but both of those hold on to your money for a set period; once the money is cleared, the only way you can get it is through a bank transfer which takes another couple of days. In good times, that's fine, but in this economic climate it's nice to be able to get my hands on my money.

    If someone knows of a good, reliable cc processors that gives relatively fast access to cash (say, 48 hours or less), I'll switch in an instant.

  8. Re:Paypal AUP only states sales of infringing good by wizardforce · · Score: 1, Interesting

    PayPal, being a business, also has the right to refuse any business they want.

    Not if it is a contract they don't. The GP might be a bit pedantic with the AUP but it does bring up questions regarding Paypal's doings in this case.

    --
    Sigs are too short to say anything truly profound so read the above post instead.