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 ?
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