Consumer complaint received 2026-04-14 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
On XX/XX/year>, I sent a small amount of XXXX XXXX XXXX XXXX XXXXom my XXXX account to XXXX. After all the fees, the resulting balance was {$0.00} of XXXX that was sent to my XXXX account. Upon the arrival of the funds, I tried to sell the XXXX to cash out, but I saw that I needed {$1.00} minimum to sell, so that info prompted me to return the money to XXXX to make use of it. I attempted to send the XXXX back to my XXXX wallet but I was met with a message from XXXX telling me I was unable to send the money at this time and to try again later : " We can't transfer your crypto just yet. This may happen as an added layer of security to protect your account. Try again later may help fix the problem. '' I tried again a few times the next day, every time resulting in the same message. I did some research and was advised by AI that the problem may be because the balance was below {$1.00}. So I stupidly added another dollar of XXXX to my XXXX account from my XXXX on XX/XX/XXXX, resulting in another {$0.00} after fees, so the balance of my ltc wallet was {$1.00}. I then attempted to transfer it out, thinking the balance being above {$1.00} would allow me to transfer/sell or whatever I so choose with the money in my account, but to my surprise, I was again met with the same. I messaged customer support and asked immediately to be connected to an agent. After a XXXX minute wait, I was greeted by XXXX. I had already began typing my message during the waiting period ; I explained what was happening and that I was being denied the ability to transfer my money. I told her that I really didn't want them to do these things because firstly, it's my money, not theirs, and also because crypto is volatile, so sometimes I want to do a transaction quickly, so by not allowing me my fundamental banking rights, they forced me to sit on that money during a down swing in price and I felt this was very unfair. XXXX decided for me yet they don't compensate me for the consequences of their decision. After reviewing my account, XXXX told me my account was likely blocked due to standard security protocols designed for my protection. She recommended I try again later. I told her i had been trying for multiple days ( over 1 week actually ) and I told her I didn't wan t them to put those protocols in place because not their decision to make. XXXX then proceeded to tell me that there was a " system generated decline '' that they are unable to override, and there is nothing they can do to help. I was getting upset, and this was not making sense so I asked to speak with a supervisor. XXXX the again recommended waiting a couple more days, because declines like this are not permanent, and it should clear in a few days and that a supervisor would tell me the same thing. I asked her what decline she was referring to, because there had not been any declined transactions. She said my crypto transaction. I told her she is not making sense because there was no decline, so how can that be the reason for all this. I asked her top show me this mysterious decline. She again recommended waiting a few more days and tried to end the chat asking me if there was anything else I needed. Now I am really upset because this XXXX representative is blatantly lying to me.So in response to asking me if i need anything more, I said yes, I want to close my account. She told me I have that option b8t I need to take out my balance first. Obviously, since they are blocking my transactions, I cant remove my balance, so they trapped me. I demanded they close my account or I would pursue legal action.She began to explain they can't close it because if the remaining balance and proceeded to explain how to sell the crypto. It was a slap in the face honestly. I told her that their imposed limitations had prevented me from selling, I had already tried, so I was trapped in an ongoing cycle that was denying me my rights. I had had enough of the lies and nonsense so I decided to end the conversation. I was extremely upset and angry and shocked that I was being treated like this. Never in my life did I think a bank would treat it's customers how I had just been treated. Also, this is not the first time XXXX has applied holds to my account ( crypto AND the regular USD funds, and this was not the first time I spent time with customer support trying to resolve issues created by their decisions to block my accounts, and I am 100 % certain, they were not doing it to protect me.

Company response to consumer: Closed with explanation