Paypal is one of the best scams going."We'll just keep the money"? Seriously? No legitimate outfit could pull a racket like that.

Paypal is indeed s scam, a poorly managed service, and a joke.  I stopped buying anything online with them because of their random blocking of any transaction they deem "strange" or "funny", and by that they mean any transaction from outside the USA. It's been a widespread rule for them for years now. The sheer amount of complaints from people around the globe is of no concern to them.  The biggest problem with them is since they are not a bank, they are not liable and dont have to go by the regulations regular banks go.  Like in this case, they can keep your money indefinitely, and they'll give you a tracking number for it.  They are typical Ebay horse****.  I tell everyone that has to do a transaction online to go for google checkout instead.

You need to have enough money to fuel a lawsuit to make that work, and for someone in the EU Paypal is a foreign entity. Paypal can defend themselves with his money, what's he got?

They've stolen people's money in the past, so they will certainly try.  Something Awful raised $30,000 for the Red Cross Katrina fund, and Paypal froze the assets, closed the account, and refunded all the money minus their fees!  Any 'investigation' they claim they are doing is actually just consulting with their lawyers to see if they can pull this one off.  The developer's only defence here is the make as many waves on the Internet as possible about this.  It's much harder to steal something when everyone is watching you steal it.

Hopefully the guy gets his money back without needing to go to court, and hopefully any business still foolish enough to be using Paypal will think twice after hearing this.  If Paypal has customers with $600,000 euros, then I think it's long overdue for the government steps in and regulate them.  They are pretty much a bank without any of the rules real banks have to follow.

I play this game and Notch (Developer) is not a "crim crim" as it was so eloquently put.  Paypal has decided to release the money however they will charge him a 5% holding fee for the trouble that they put him through.  If you go to minecraft.net and go to the development blog you can see Notch's posts on the subject.