Consumer complaint received 2025-09-21 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other service problem — 
Company: Paypal Holdings, Inc
State: MD

Complaint narrative:
I am filing a formal complaint against Venmo my email on the account is XXXX ( owned by PayPal ) for unjustly closing my account and placing a 180-day hold on my legally earned funds, despite my full cooperation and verified identity. I have been a XX/XX/XXXX user for over three years and have only ever had one verified account. I have never engaged in suspicious or prohibited activity. On XX/XX/XXXX, I won {$4500.00} from XXXX, a fully licensed and legal sports betting platform in the United States. I left {$100.00} in my XXXX account and withdrew the remaining {$4400.00} to my XX/XX/XXXXaccount the same day. XXXX officially supports XX/XX/XXXX as a valid deposit and withdrawal method in the U.S., making this transaction fully legitimate and compliant. 

Once the funds appeared in myXX/XX/XXXX account, I initiated a standard ( not instant ) bank transfer to my linked bank account. The next day, I received a notification that myXX/XX/XXXX account was placed on hold. I was then asked to verify my identity, and I promptly submitted my government-issued ID as requested. Venmo even sent me an email thanking me for complying with their verification process. I then waited six full days, without access to my funds, while calling XX/XX/XXXX support multiple times and following up by email, trying to get to the bottom of the situation. Despite my efforts and patience, I eventually received an email stating that my account was being permanently closed and my money would be held for 180 dayswith no explanation of what I had allegedly done wrong. 

XX/XX/XXXX cited vague policy violations such as suspicious activity, fraud, multiple accounts, unverified identity, or business transactions on there website for banning people. However, none of these reasons apply to me. I am fully verified, used only one account, and the money I received came directly from XXXX legitimate platformunder my name, with a clear transaction history. There is nothing suspicious or fraudulent about this. I was transparent from start to finish, followed all instructions, and was actively trying to resolve the issueonly to be shut out with no justification. 

This situation has caused significant financial harm. I have children in elementary school, and I need access to my funds to pay bills, cover household expenses, and take care of my family. I have already been without my money for days, and I can not afford to wait six months for funds that I earned fairly and legally. XXXX actions are not only unfairthey are harmful and potentially deceptive. After researching online, I found many others reporting the same experience : legitimate users having their accounts closed and funds held without cause or communication. This seems to be a systemic issue. 

I am requesting thatXX/XX/XXXX immediately release my {$4400.00} so I can transfer it to my main bank. I do not want continued access to XX/XX/XXXX, and I do not need their so-called protectionI just want my own money. If they believe I violated a policy, they should be able to state clearly what it was and back it up with facts, which they have failed to do. 

I am respectfully asking the CFPB to investigate this matter and help ensure that XX/XX/XXXX is held accountable and that my funds are returned promptly. What they are doing is unacceptable. I will be submitting document proof of my earnings on XXXX, withdrawing it into XX/XX/XXXX, and also depositing into the app with myXX/XX/XXXX an the money posting on my venmo account, along with the same complaints people have like me....

Company response to consumer: Closed with non-monetary relief