Consumer complaint received 2025-04-24 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: PR

Complaint narrative:
Got it! Heres the updated version of your letter with your personal email included instead : Subject : Formal Complaint Against PayPal and Involved Financial Institutions Regarding Reversal of Legitimate Transaction To whom it may concern, My name is XXXX XXXX XXXX, and I am submitting this complaint regarding the unfair and harmful actions taken by PayPal and the financial institutions involved in a reversed transaction, based on a false claim. 

On XX/XX/year>, I received a payment of {$4300.00} USD from XXXX XXXX XXXX XXXX ) via PayPal. This payment was sent voluntarily by the sender in order for me to assist in purchasing a cryptocurrency certificate to gain access to a third-party program known as XXXX XXXX XXXX I fulfilled my part of the agreement by purchasing the crypto certificate and providing the required access. I was never involved in selling or promoting the company itself my role was solely to assist in the crypto transaction, which the sender requested and authorized. 

Weeks later, after the company ceased operations, the sender falsely reported the transaction as unauthorized. PayPal not only reversed the transaction, but also withdrew existing funds from my account and imposed a {$15.00} dispute fee, leaving me with a negative balance of {$4000.00}, even though the total claim was for {$4300.00}. That difference reflects my own money that was forcibly taken and applied toward the claim. 

Whats even more alarming is that PayPal never allowed me to respond to the dispute or present any evidence, despite the existence of chats, records, and transaction proof. I later learned that this is happening to many others who helped facilitate payments to XXXX XXXX. These were peer-to-peer transactions and not product sales yet we are being treated like fraudsters for simply helping others complete crypto payments they requested. 

To make things worse, when I contacted PayPal, they claimed that the bank made the decision, but when others in the group contacted the banks, they were told that PayPal was responsible for the reversal. This lack of transparency, accountability, and proper investigation is deeply troubling and has caused me financial hardship, emotional stress, and countless sleepless nights. 

I formally request a full reimbursement of the {$4300.00}, immediate review of this fraudulent dispute, and a full investigation into XXXX dispute handling practices including whether evidence is being properly submitted to banks and whether consumers are being fairly represented. 

I am also pursuing legal action against all responsible parties, including the individual who made the false claim, PayPal, and any financial institutions that participated in this process without due investigation. 

I am fully prepared to provide all supporting documents, screenshots, payment confirmations, and the FBI XXXX complaint I submitted on XX/XX/year>. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation