PayPal Refusing to Reverse Fraudulent BitCoin Exchange Gone Bad

[luckypyrate]

I made a really stupid mistake.  Right up front I will go ahead and acknowledge this fact.  I sold a miner, wanted to use the funds to buy two new miners, and was looking to exchange the paypal balance for btc via this forum.  Finally I got a hit and was so anxious to make the exchange I forwent all precautions and initiated the transfer.  The following back and forth on Skype went like this:

[11/8/2014 10:24:47 AM] Torrent er: Mate i checked my paypal again and it says your payment is reviewed, it may be cancelled or clear
[11/8/2014 10:24:48 AM] Torrent er: what to do
[11/8/2014 10:25:33 AM] Torrent er: please help
[11/8/2014 10:25:42 AM] Jesse:   Payment For Angela D maris

    Completed
[11/8/2014 10:25:57 AM] Torrent er: Yes right
If u want screenshot i can give
[11/8/2014 10:26:00 AM] Torrent er: really its coming
[11/8/2014 10:26:06 AM] Jesse: send bitcoin within 5. minutes or i am cancelling the transaction
[11/8/2014 10:26:40 AM] Torrent er: Can u wait for someone till i contact paypal and see why its coming
[11/8/2014 10:26:51 AM] Torrent er: if i dont send u btc then , you can chargeback

That is just a snippet of course.  Anyway, needless to say I never received any bitcoin deposit from this person and so I submitted a fraudulent transaction dispute with PayPal.  After waiting some days for a response from the other party, I got an email this morning that they had denied my claim. 

I am waiting for 8 PST to come around so I can call them with a big WTF and figure out how they are going to resolve this, but my hopes are not particularly high.  Of course my wife is going to kill me.  Anyone else have this issue and get a positive result?  I am desperate for some good news here...

[hilariousandco]

Where did the funds come from? Credit/debit card or existing PayPal balance? You can try do a chargeback via your creditcard if all else fails.

[OmegaStarScream]

That was really a stupid mistake mate , you shouldn't just trust people like that .
You sent the money as gift ? that would be hard to chargeback

[luckypyrate]

Yeah tell me about it.  I am on the phone with them now trying to get them to reconsider the claim.  I really cannot afford this right now

[luckypyrate]

Where did the funds come from? Credit/debit card or existing PayPal balance? You can try do a chargeback via your creditcard if all else fails.

unfortunately it was paypal balance.

[sanos51ck]

Where did the funds come from? Credit/debit card or existing PayPal balance? You can try do a chargeback via your creditcard if all else fails.

unfortunately it was paypal balance.

Take that as an expensive lesson.

I doubt you'll ever see that balance again.

[sudexx]

Where did the funds come from? Credit/debit card or existing PayPal balance? You can try do a chargeback via your creditcard if all else fails.

unfortunately it was paypal balance.

Never ever use balance to someone you don't know.

[Eisenhower34]

This is one more reason why you should never involve paypal when trading bitcoin. It is almost certain that one of the parties is going to try to scam and if you are the one who gets scammed all you can do is request that some third party who is not friendly to bitcoin get you your money back.

Many people tend to think that just because it is "paypal" they can automatically get their money back, however there are only a limited number of circumstances that paypal will reverse a transaction, and if the person sending paypal is the one scamming then there is nothing stopping them from lying to paypal so it will fit their criteria to reverse the payment

[siampumpkin]

In my experience, PayPal will only reverse a transaction when they can recover the funds. If they funds are not recoverable from some source such as PayPal Balance, credit card or bank account they will not reverse the transaction. They look out only for their own bottom line and do not care about you. If they have to take a loss you are out of luck. Unfortunately, because of the limited regulation they fall under they tend to abuse their power and screw the customer if it's in their best interest. Sorry to hear about your loss but trust and bitcoin are not a good combination.

[luckypyrate]

In the end they (paypal) are saying I put the complaint in wrong and it has been resubmitted.   Fortunately as well I have retained an extensive chat log showing me ask him the seller for the bitcoin over and ovr and the seller continuing to delay and stall.   

[luckypyrate]

You sent the money as gift ? that would be hard to chargeback

100% not true.

That's the most pervasive Paypal myth there is.

Here's to hoping.

[malaimult]

You sent the money as gift ? that would be hard to chargeback

100% not true.

That's the most pervasive Paypal myth there is.

In order to reverse a gift you would need to lie to paypal and tell them they the transaction was unauthorized. They may end up asking you to sign something saying as such and you would be exposing yourself to more trouble then it is worth if you were to commit perjury to get a little bit of money back that you were scammed out of