I am posting this to provide some hope for anyone else that is currently or has ever sold some Bitcoin on LocalBitcoins via PayPal payment and then had someone dispute the transaction and charge back the funds...
LocalBitcoins clearly states that accepting payment via PayPal is a very high risk of fraud.... although... the rates to sell to PayPal buyers are very tempting which is why I proceeded with the sale. I found a buyer with an account over 1 year old... over 100+ positive feedback ratings, not blocked by anyone and nothing appeared to be sketchy.
on May 13th, I went to the buyers ad and sold him the minimum allowable on his ad which was starting at $500. At the time, Bitcoin was roughly $1775 each and the ad was purchasing at almost $1933 which should have been a red flag on its only but anyway.
Shortly after getting paid and releasing the Bitcoin, I reviewed the sellers account and started to notice negative and "scammer" feedback coming in for what appeared to be several thousand dollars worth of Bitcoin. 24 hours later I got the chargeback dispute and about lost my mind haha
PayPal requires a tracking number or some sort of receipt to prove the seller sent something so I thought hope was lost. Later, I used the "snipping tool" and took a screenshot of the LBC contract and agreed upon price and submitted to PayPal to review and prove we agreed on a price and a sale. 11 days later.... after checking everyday and seeing a -$500 balance and not being able to use my account.. they have decided in my favor and will be charging back the charge back and un-freezng my account!
Just wanted to share some hope for those of you currently dealing with this. Needless to say, itll be my last PayPal transaction haha
http://i66.tinypic.com/t4tjyw.jpg
