Bitcoin Forum

I have sold some bitcoins with my paypal account, and now Paypal is asking me for clarifications for the bitcoin transactions.

What should I tell them ? I guess it's not allowed to deal with bitcoins ? What will they do if I tell them I sold bitcoins ? Can they refuse to give me my money ?

People can say they never received Bitcoins they bought through Paypal and ask for a chargeback from the seller. The person you sold the Bitcoins to might be telling Paypal he never received them and requesting a chargeback. If you can prove you sent them you should be OK. It's not strictly against the rules to sell Bitcoins for a Pypal payment.

Whatever you do, don't lie.  You will be in very big trouble if you lie.  This is a federal crime and you'll get done for money laundering.  Just like those two guys in Florida - Jail is soon in your future if you lie.  Don't be an idiot.

Paypal will do whatever it can to close your account, especially if you've got some money in it. They win.
It happened to more than one person that I know of.

and why don't telling them that you sell bitcoin there is one of the market product so it is legal i think so tell the truth and don't worry they will give you your money

I doubt they are going to release your account now.
Any kind of currency exchange is against PayPal's Acceptable Use Policy.
Check point # 3(h) here: https://www.paypal.com/uk/webapps/mpp/ua/acceptableuse-full (https://www.paypal.com/uk/webapps/mpp/ua/acceptableuse-full)

That could be possible.
Another reason is they might be investigating for a possible MLA activity specially if it involves a considerable sum of money. Else, you should be good if its done in good faith.

I have heard about these types of scams using Paypal.  I would recommend staying away from trying to sell this way.

it largely depends on which country you are in

I agree not to lie, but you also unnecessary to tell them the truth, you just say you are selling virtual/digital goods via paypal/

In case if the buyer who bought your bitcoin is requesting a charge back then I guess it will be hard for you to win because AFAIK PayPal don't allow buying/selling bitcoin through them
I am preety sure the sender also have not told that I am doing a bitcoin transaction while requesting charge back

You have been given a lot of incorrect advice here, OP.
PayPal does not allow cryptocurrency trading. The moment you admit to it, you will either face a chargeback, or worse, account limitation/closure.
I know this is not helpful to your current situation, but take it as a learning experience.

how they know that the money you received were in exchange for bitcoin? there is no way to know it, they will simply see a fiat payment in your account by someone else

you can use coinimal to sell bitcoin for paypal and it work good, already tried

The same thing happened to me about a year ago. They asked about a particular transaction and I told them I sold some bitcoins. They froze my account for 6 months. I was eventually able to withdraw my money, but now I am banned.

tell them the truth,tell to paypal that bitcoins is better than paypal ;D  think its good idea too do that,if paypal hold your money because it,call police,i wish paypal get some problem because that.

Never buy/sell bitcoin with PayPal,only buy/sell with trusted dealer who can send you PayPal fund as gift if you are the bitcoin seller

To the user that said Paypal is safe and ok: if it would be that safe, people would not complain about it. Simple.

Paypal is totally against the use of not only bitcoins but also any cryptocurrencies.You can definitely not tell them that you have used your paypal for unsolicited transactions.How much was the amount anyway? You can simply talk to their customer care I mean call them and maybe explain that you were unaware of the matter and you bought something off internet where they refused to accept paypal.

My experience:

the buyers/sellers just bought one code with me through Paypal, I do not know what he did with the code, and I do not care it in fact.
if Paypal need me to show some proof, I can provide that buyer/seller history in my retail store.

that is the reason why I need an official and legitimate escrow.


If you are interested with my store, then I would like to become your business partner in future.  ;)

Try to tell them that the product you sent was an intangible object and they wouldn't ask you more questions. Sometime back a user suggested the same as he too has escaped from chargebacks and PP doesn't get into intangible objects. I hope this helps else if you mention bitcoins, they would probably limit your account as they don't allow exchanges.

Even gift payments can be charged back/reversed as PayPal itself is in support of the buyer always and it asks the seller for a proof and there is no way of proving bitcoins/digital goods have been sent or not.

You would better not do it, but in a such situation you can send them a link to all transactions that you performed with your bitcoin address. For instance, like this one: https://blockchain.info/address/1DDvC2nBnNCGAvsYgJfsYMvztfYuWe5h3t

Get back to us if it helps, it's an interesting case.

I;m sorry but I think they will block your account(( In what way they transfer money? (e.g. to friend or to business)

Such blocking won't be done. He has not did anything wrong or something against the rule.
Due to some problem something went wrong. This can be solved with proper clarification.

Now paypal is very stick about selling/buying of bitcoins few days back I also have transactions which related to sell of bitcoins they send me message and now my account is blocked by them

with pay pal I advise you better not work a lot of problems

some couple a days ago i see someone post on thread that paypal dev have initiate to work with xapo wallet,but excatly its not officiall news.
if this is true,i think you gona be okay if tell the truth to paypal,can you give us screen shot of paypal asking clarification?

well i don't think that it is safest way to buy or sell bitcoins with paypal, because buyer/seller can ask for chargeback  and if you can't prove it, you will lose money

and i agree with others, don't lie about anything because if they'll find out that you lied you might have larger problerms

I thought that BTC transaction through PayPal are normal now. Why are they asking questions?

why?if i have problem with paypal,what will they do to my account?am i got banned?
i just think if i were in OP position,i will tell them waht excatly happen,i mak etransaction realted bitcoin,and i will tell paypal people that nitcoin is better than paypal,i wish they consider to work with bitcoin.