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PayPal Freezes the Assets of Wikileaks.org 403

matsh sends word that PayPal has frozen the assets of wikileaks.org. From their Web site: "Paypal has as of 23rd of January 2010 frozen WikiLeaks assets. This is the second time that this happens. The last time we struggled for more than half a year to resolve this issue. By working with the respected and recognized German foundation Wau Holland Stiftung we tried to avoid this from happening again — apparently without avail." The submitter adds: "Hopefully we can pressure PayPal to resolve this quickly, since this seems like a dangerous political decision."
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PayPal Freezes the Assets of Wikileaks.org

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  • by Anonymous Coward on Saturday January 23, 2010 @05:49PM (#30872848)

    I doubt this is political. Paypal is notorious for freezing accounts based on some internal drone's mistake or a some programmed tripwire. There are countless horror stories about this: http://www.paypalwarning.com/ http://www.paypalsucks.com/frozen-accounts.shtml When you outsource all your employees and pay them 5 cents an hour or whatever slave wage they pay foreign workers, you get what you pay for.

    If it is political, then Paypal, as an organization is of unfathomable stupidity.

  • by Macrat ( 638047 ) on Saturday January 23, 2010 @05:58PM (#30872908)

    http://www.kagi.com

    Existed long before PaySuck started.

  • by terraformer ( 617565 ) <tpb@pervici.com> on Saturday January 23, 2010 @06:00PM (#30872926) Journal

    Yes it does. www.gunpal.net

  • by knarf ( 34928 ) on Saturday January 23, 2010 @06:11PM (#30873028)

    ...is to empty the account every day. There is no sense in keeping any amount of money within their graps as they have shown time and time again they will freeze access without real cause or warning.

    I was part of the collective to buy i-Opener [wikipedia.org] machines from the failed Netpliance company. We used Paypal to collect fund from participants as that seemed to be the best way at the moment... How wrong we were... Paypal froze access to the account once it had accumulated enough money for them to be profitable to draw interest from. Of course they did NOT block payment into the account, just access to the funds. They had no real reason to freeze the account and ignored their own rules in both freezing and unblocking the account. They just sat on the money for a month or two, drawing interest from it. When they finally unblocked the account - again without giving any reason whatsoever - the deal with Netpliance had almost bounced.

    Paypal is not a bank. Don't treat it as a bank. Don't entrust them with your money. Don't give them access to a debit account, only to a credit card.

    Paypal, in short, can not be trusted. Use it at your own peril, only use credit cards so you can reverse the transaction. Never ever accumulate any real amount of money on a Paypal account.

  • working mirror (Score:2, Informative)

    by toxygen01 ( 901511 ) on Saturday January 23, 2010 @06:12PM (#30873032) Journal
    is here: http://mirror.wikileaks.info/ [wikileaks.info]
  • by michaelmalak ( 91262 ) <michael@michaelmalak.com> on Saturday January 23, 2010 @06:20PM (#30873080) Homepage
    The problems with PayPal are so infamous that no less than Fortune/CNN listed five alternatives [cnn.com]
  • Re:Unsurprising (Score:5, Informative)

    by houstonbofh ( 602064 ) on Saturday January 23, 2010 @06:36PM (#30873216)

    Banks can't take or freeze your money simply because they don't like what you do (which Paypal often does)

    It's actually worse than that... they can take and freeze your money because they don't like what one of your business partners does...

    They can screw you for just about anything, and have. http://www.paypalsucks.com/ [paypalsucks.com] Old news, but for some reason, no one knows.

  • Re:Burnt twice? (Score:5, Informative)

    by houstonbofh ( 602064 ) on Saturday January 23, 2010 @06:41PM (#30873272)

    Unfortunately Paypal is really the only option for a lot of smaller sites for whom a merchant account is too much hassle and expense.

    Uh... No... http://www.screw-paypal.com/alternatives/alternatives.html [screw-paypal.com] Also, having your account frozen and cash pulled from you bank is a bit of a hassle too. http://www.paypalsucks.com/ [paypalsucks.com] Never trust PayPal.

  • by Anonymous Coward on Saturday January 23, 2010 @06:47PM (#30873336)

    Um, yeah, spam has little to do with malware and spyware on your own computer. Email accounts get phishing scams even if their users have never even encountered a virus from places like Bank of America, UPS, Western Union, and yes, PayPal.

    What you describe is just a popular means of phishing...whether you have a PayPal account or not, and certainly regardless of how "scrubbed" your computer is.

    PayPal's business practices are plainly questionable to begin with, and the Internet is littered with actual horror stories of dealing with them. There's no need to fabricate accusations--especially ones as weak as this.

  • Re:bunch of whiners (Score:3, Informative)

    by houstonbofh ( 602064 ) on Saturday January 23, 2010 @06:51PM (#30873378)

    it's not like there is no alternative to pay pal. Just use something else.

    For example?

    Here is a list...
    http://www.screw-paypal.com/alternatives/alternatives.html [screw-paypal.com]

    Here is a list...
    http://money.cnn.com/galleries/2008/fsb/0802/gallery.paypal_alternatives.fsb/index.html [cnn.com]

    And some more sites...
    http://www.paypalsucks.com/ [paypalsucks.com]
    http://www.paypalwarning.com/ [paypalwarning.com]

    I mean, did you even look at all?

  • by houstonbofh ( 602064 ) on Saturday January 23, 2010 @06:55PM (#30873406)

    ...is to empty the account every day. There is no sense in keeping any amount of money within their graps as they have shown time and time again they will freeze access without real cause or warning.

    Also, clean out your bank account. They have the right to go in and take money back out of your bank account. In some cases they can even overdraft you, so make sure you do not have overdraft "protection."

    Or just don't use the cheating bastards.

  • Re:Burnt twice? (Score:5, Informative)

    by Entropy98 ( 1340659 ) on Saturday January 23, 2010 @07:14PM (#30873540) Homepage

    Have you actually tried any of those? Do you do any sort of serious business online?

    I've tried a few of those and they all have serious limitations.

    From the very article you linked: "No one service can match PayPal alone -- but all of these services exceed PayPal in the customer relations department. With skillful use of two or more of these services, buying and selling on eBay without PayPal is NO problem."

    With skillful use of two or more? The more difficult you make it for your customers to order from you the less money your going to make.

    From the list you linked to:

    Allpay.net -- Recommended for U.K. Only
    BidPay.com -- Out Of Business 2 Years
    CertaPay -- Recommended for CANADA Only
    Checkfree -- NOT RECOMMENDED
    HyperWALLET -- NOT RECOMMENDED
    Moneybookers -- Recommended for ALL
    Nochex -- Recommended for U.K. Residents and Certain Others
    Ozpay.biz -- Out Of Business 3+ Years
    Paymate -- Recommended for Australia & New Zealand
    ProPay -- Recommended for U.S. Sellers
    Xoom -- NOT RECOMMENDED

    So out of that entire list there are only 2 that will let a US seller sell worldwide and are not listed as "Not Recommended". Moneybrokers and Propay.

    I sell software on the internet and I've looked for alternatives to Paypal after having my account frozen.

    Moneybrokers wanted some proof or license or something (I don't remember exactly this was years ago) to show that I had the right to sell my software. After a few less than helpful email exchanges I gave up on them.

    Paypro, from their website, says you have to pay $60 a year to be able to accept all credit cards and you can only receive $3000 a month. This can be increased with a review of your credit and merchant history (if you have any). You can only accept Visa and $1000 a month with their regular plan.

    I guarantee you if you get enough problem transactions any merchant is going to freeze your account and hold your funds for a few months to make sure they don't get screwed.

  • by Eric Freyhart ( 752088 ) on Saturday January 23, 2010 @07:19PM (#30873582) Journal
    My horror story with Paypal starts many years ago. I had a personal account with them since something like the late 90s, and never once had an issue with them. That was before I went into business for myself, and converted the account over to a business account around the year 2000. What a mistake.

    Now, let me just state the following:

    - We sold books, novels, and prints.
    - We sold works that were NOT adult.
    - We sold works that we clearly had the copyright on.
    - We were an independant publisher.

    I learned oneday that the account had been closed due to a violation of the Acceptable Use Policy. Well, we were in the business of self publishing, things like science fiction novels and fantasy books. We sold online through our own website and through Amazon.com. I contacted Paypal and got a nice lady on the phone who went over our online web site with me on the phone and could not find what would have been a violation. So the account was re-activated...

    Oh, then a few months later same thing. Account closed. This time with this message...

    In accordance with PayPal's User Agreement and Acceptable Use Policy, we have closed your account. Your funds may be held for 180 days from the date of your last transaction. After 180 days, you will be able to access your funds by requesting an online bank transfer or, if applicable, a check from PayPal. Please update your address or bank information as we cannot be held responsible for checks issued to an incorrect address. We do ask that you please remove reference(s) to PayPal from your site.

    I tried for over a month to get the account back in good standing, but was constantly told that the decision was final and there was nothing I could do. We sold everything on our main website through Amazon.com also (who never had any issue with the books we printed), and they also accepted Paypal as a payment method. Still to this day I have not been told a reason, nor given any information on why this action was taken. We simply gave up on Paypal and converted the site over to a real merchant account.

    3 years ago I sold the company and the assets to another publishing firm. I started a new enterprise under a new LLC and opened a Paypal account again. No problems, no issues. Oh, I must have been an idiot to think Paypal was not going to do it to me again...

    Well, my new account is now closed. It seems that Paypal has not blocked the company from using the account, but they did blacklist me. As soon as we went in to convert the account over to a business account I entered my SSN and wham! Account closed due to the original violation from over 3 years ago.

    Now, I was under the assumption in the United Stated that you could not blacklist a person from your business unless there was a dam good legal reason. And why won't they tell me what in the world I did to violate their user agreement? Its like being tried, convicted, and sentenced without as much as a ray of hope to prove your not guilty.

    I had a service rep fom Paypal (a manager) go over our new website (we sell clothing) and could not find a single thing that could possible violate any policies from Paypal, nor could he find any reason for this decision. But it is final, and over with.

    To make a long story short, I am now blacklisted from ever using Paypal again. No reason, no explanation, no way of proving that I am not guilty, and no way to do anything about it. It has been, to this day, the most horrible experience I have ever gone through. I kept getting the impression from Paypal that I was some sort of pornographer. I feel ashamed and tarnished by this decision, and will have to deal with it for the rest of my life.

    I personally recommend to anyone who asks me to stay away from Paypal. NEVER use this company, as you have NO protection under law from any harm they cause you or your company.

    Get a real merchant account. With a merchant account you deal directly with the credit card companies and
  • by vanyel ( 28049 ) * on Saturday January 23, 2010 @07:23PM (#30873610) Journal

    ...especially if they've had the problem before! Although I've been using Paypal for over 15 years with no problems at all, I still don't let the balance there get too high for exactly this reason.

  • by Low Ranked Craig ( 1327799 ) on Saturday January 23, 2010 @07:24PM (#30873624)
    The problem is that PayPal walks like a bank, talks like a bank and acts like a bank, but has so far been able to avoid being classified (and therefore regulated) as a bank. I'm not big on regulation, and my solution was to simply not use them anymore, but the FTC should crawl up PayPal's ass with a microscope. I'm pretty sure that's their Porsche in the parking lot...
  • Re:Unsurprising (Score:3, Informative)

    by cyber-dragon.net ( 899244 ) on Saturday January 23, 2010 @07:29PM (#30873656)

    What koolaid did you drink?

    The only reason the U.S. is so in bed with China is that the Chinese own a large portion of the U.S. debt. Congress over spends by huge margins and then sells the loans to China, who then threatens to call it in if they don't get favorable trade deals.

    It's a brilliant plan, interest on the money, control in government and every manufacturing contract and associated I.P. the U.S. has.

  • by ravenshrike ( 808508 ) on Saturday January 23, 2010 @07:32PM (#30873678)

    W00T! I've attained the status of right wing troll. Even though, assuming the status of troll is correct, it would be much more proper to label me libertarian troll. This would of course require you to differentiate much more broadly on the political spectrum. After all, there's a reason I don't use liberal as a noun to describe leftist idiots.

    "In normal usage then, as now, the term “speech” referred to oral communications by individuals. See, e.g., [various citations]. Given that corporations were conceived of as artificial entities and do not have the technical capacity to “speak,” the burden of establishing that the Framers and ratifiers understood “the freedom of speech” to encompass corporate speech is, I believe, far heavier than the majority acknowledges."

    The conclusions arrived to in Stevens' opinion REQUIRE that you assume all non-oral types of speech do not apply concerning the part of the 1st amendment that refers to speech. Which means that in order to accept his conclusions, you have to assume that no other types of speech exist. This means that things like flag-burning, as abhorrent and juvenile as I personally find it, could be legislated as to be illegal.

  • Re:Unsurprising (Score:5, Informative)

    by no-body ( 127863 ) on Saturday January 23, 2010 @07:35PM (#30873700)

    > "they feel like it"

    Most of it is automated. They are running risk rules on transactions and if one hits a score, the account is frozen - they call it "limited".

    Can be anything - they sure won't publish their algorithms.

    And:

    Prohibited Activities

    You may not use the PayPal service for activities that:

    violate any law, statute, ORDINANCE or REGULATION

    (emphasis mine)

  • Re:Burnt twice? (Score:2, Informative)

    by Lord Maud'Dib ( 611577 ) on Saturday January 23, 2010 @07:47PM (#30873792)
    Absolutely, under no circumstance deal with Paymate. They are even more corrupt than Paypal in my experience. I had an account with Paymate because I didn't trust Paypal any longer (and the fees were obscene). I sold a used game which the buyer then claimed was damaged. After much discussion back and forth (I was clearly in the right as the small claims court has shown) he flat out lied to Paymate saying he did not receive the goods and Paymate withdrew the money from my bank account without any warning. I was only aware of it when scanning my bank account statement weeks later. Trying to sort this out I found out Paymate operated from a nondescript office with only two people. Their contact phone number was't even accessible from their website. Do not trust paymate.com.au
  • Re:Unsurprising (Score:4, Informative)

    by ElectricTurtle ( 1171201 ) on Saturday January 23, 2010 @07:49PM (#30873814)
    Australia's government does not (to anybody's knowledge) materially support hacking businesses in other countries to help quash dissent in their own. I agree that Australia's censorship schemes are reprehensible, but the main issue with China is state-sponsored hacking, and Google is the first big name to take a stand on that, and they are using the long-running 'human rights debate' as their weapon of face-losing revenge.
  • Re:Unsurprising (Score:3, Informative)

    by dgatwood ( 11270 ) on Saturday January 23, 2010 @07:54PM (#30873850) Homepage Journal

    Agreed. Having been the buyer in a transaction that PayPal froze (which was only resolved quickly because one of the other people who was getting screwed knew one of their VPs), I can't imagine why any nonprofit organization trusts them as far as they can throw them. There are plenty of real credit card processors that don't act like thugs. I would urge Wikileaks to pick one and terminate their relationship with PayPal ASAP.

  • by Arancaytar ( 966377 ) <arancaytar.ilyaran@gmail.com> on Saturday January 23, 2010 @07:55PM (#30873854) Homepage

    Here's their response to my question:

    Hi,

    we are sure that we will get to the money at some point in time. Direct banking transfers generally are much better for us, as that prevents this issue from happening. If you can reverse it, and want to transfer directly, its fine by us. But cant say how much of a hassel that is.

    Thanks for the support and the solidarity!

    WikiLeaks

    On Sat, Jan 23, 2010 at 11:46:47PM +0000, Arancaytar wrote:
    > > Hello,
    > >
    > > I donated to you via Wau-Holland (using Paypal) on Jan 19. Should I
    > > attempt to reverse this payment in order to make a bank transfer
    > > directly (and is there any chance of that working)?
    > >
    > > Regards,
    > >
    > > --
    > > Arancaytar

  • Re:Unsurprising (Score:3, Informative)

    by schon ( 31600 ) on Saturday January 23, 2010 @08:52PM (#30874210)

    paypal is still operating in violation of a court order that states that their terms of service is illegal.

    Citation please?

    I loathe paypal, and won't use them because of their "terms" - I'd love some hard core reason to show to people who insist on 'sending' me money through them. (Yeah, like I'm gonna give PayPal my bank account information.)

  • Re:Unsurprising (Score:5, Informative)

    by GaryOlson ( 737642 ) <slashdot AT garyolson DOT org> on Saturday January 23, 2010 @08:54PM (#30874226) Journal
    SMP Bank has filed all the proper papers and provides the appearance of a bank. But, given that two of the bank council members are kleptocrats [foreignpolicyblogs.com], whether or not SMP Bank is a bank is not the question. Are they any more trustworthy than Paypal?
  • Re:Unsurprising (Score:5, Informative)

    by h4rm0ny ( 722443 ) on Saturday January 23, 2010 @08:54PM (#30874230) Journal

    We'll find out whether people care or not when there's an alternative.

    I formerly subscribed to Slashdot but I don't anymore because they now only accept Paypal. When they go back to accepting credit cards, I'll subscribe again. There have been other instances where I've avoided doing business with someone because it meant using Paypal. Don't trust them. Likely never will. It seems statistically unlikely that I'm the only one with this attitude toward them.
  • Re:Burnt twice? (Score:3, Informative)

    by haruharaharu ( 443975 ) on Saturday January 23, 2010 @09:01PM (#30874272) Homepage
    Hmm, what about amazon's checkout service? They seem a bit more trustworthy than paypal, but they'd have to be criminal to be less so.
  • by barfy ( 256323 ) on Saturday January 23, 2010 @09:12PM (#30874354)

    Paypal and any other donation service needs to be used as a conduit only. Only enough money needs to be kept in the conduit to keep it active.

    All other moneys are swept daily. And placed in normal operations, excess moneys need to be dealt with in order to help defeat single bank actions. Preferably under whatever shells you need..

    If you are at all political, multiple conduits need to have already been investigated, and ready to be set-up in a single days notice.

    Merchant accounts are NOT that expensive.

    They are in talks to change the laws in Iceland. Surely they have somebody bright enough to come up with a way not to get fucked over by paypal again. They should simply not have access to enough cash to take you down.

    SHAME!

  • by Fantastic Lad ( 198284 ) on Saturday January 23, 2010 @10:19PM (#30874734)

    GoogleCash also needs to follow under the same rules as PayPal. However I am yet to hear of this type of case from GoogleCash as I do with Paypal.

    All valid points, but I just wanted to quickly add that Googlecash is not affiliated with Google. Seems scammy to me.

    -FL

  • by NatasRevol ( 731260 ) on Saturday January 23, 2010 @10:19PM (#30874736) Journal
    As I said above, how about Google freaking Checkout?
  • by SuperBanana ( 662181 ) on Saturday January 23, 2010 @11:44PM (#30875338)
    Back in '99, Digital River was doing electronic software delivery. I love this bit:

    "Digital River understands that small business owners need that cash immediately," explains David Heath, CEO of Matrix Games, a computer game company that has worked with Digital River for three years.

    Funny, Digital River never paid the company I worked at...at all. They sold hundreds of copies of the software, and didn't send our company a fucking dime. Ever.

    Got so bad, word had to be spread via online forums, usergroups, and dealers that DR wasn't paying the company, and nobody should do business with them.

  • Re:Unsurprising (Score:5, Informative)

    by apoc.famine ( 621563 ) <apoc.famine@NOSPAM.gmail.com> on Sunday January 24, 2010 @12:27AM (#30875578) Journal

    You're not.
     
    There are a bunch of places that have missed out on my money because they only took PayPal. Free online games which rely on donations, websites like slashdot, places that do micropayments, charities, businesses, etc.
     
    I will NOT do business with PayPal. Period. I don't care what it's for, or how much it may potentially benefit me. I don't even care if it's just paying by credit card through them.
     
    PayPal is not a bank, is not accredited, can't be trusted, and will NEVER EVER touch any of my money or other financial assets. Should they decide to do ANYTHING, my only recompense is to try to sue a corporation with deep pockets.
     
    When it comes to my money, that's a risk I flatly refuse to take.

  • Re:Unsurprising (Score:1, Informative)

    by Anonymous Coward on Sunday January 24, 2010 @12:51AM (#30875746)

    We actually don't favor trade with China *above* all other nations. You probably read that China had "most favored nation" status at some point and were confused.

    "Most favored nation" status does not mean what you think it means.

    http://en.wikipedia.org/wiki/Most_favoured_nation [wikipedia.org]

  • Re:Unsurprising (Score:3, Informative)

    by rumith ( 983060 ) on Sunday January 24, 2010 @01:53AM (#30876140)
    There is an alternative: try Google Checkout.
  • by techhead79 ( 1517299 ) on Sunday January 24, 2010 @02:04AM (#30876190)

    Companies use their own taxID, not an individual SSN.

  • by Kilm_O ( 151797 ) <koering@mail.com> on Sunday January 24, 2010 @03:31AM (#30876552) Homepage

    I think what's more important is China owns $1 out of every $10 of US public debt so they've got us comming and going.

    http://www.washingtonpost.com/wp-dyn/content/article/2008/11/18/AR2008111803558.html [washingtonpost.com]

  • Re:Unsurprising (Score:1, Informative)

    by Anonymous Coward on Sunday January 24, 2010 @03:37AM (#30876582)

    In Europe PayPal _is_ a bank, based in Luxembourg, and therefore regulated by the CSSF like any other bank.

  • Re:Unsurprising (Score:3, Informative)

    by rolfwind ( 528248 ) on Sunday January 24, 2010 @09:25AM (#30877744)

    You may not use the PayPal service for activities that:

    violate any law, statute, ORDINANCE or REGULATION

    Yeah, I have a paypal account. Another rule is that you may not use it for any item that is prohibited by ebay because it's an ebay company - even if it's perfectly legal and the transaction outside ebay.

    I didn't sell such an item, but someone I did some small transaction with told Paypal that the item he recieved was against ebay regulations. My account was frozen, eventually the money from that transaction was taken (given back to the unscrupulous buyer) and I was also out of the item. Paypal didn't care.

    Again, a bank can't do this simply play with transactions like that, because, say, it's a tatoo parlor and they're against such a thing. It's not Paypal's job to "enforce" the law by themselves either.

    Take your hypothesis and flush it, because it's crap.

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