[Image] Donate $25 for two DVDs of the Cryptome collection of files from June 1996 to the present

Natsios Young Architects


17 March 2010

A18 sends:

I never trusted PayPal. So I never created a PayPal account. And after reading this I certainly will never create a PayPal account.

__________

A17 sends:

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__________

A16 sends:

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16 March 2010

A15 sends:

I have been following your problems with paypal and because of it I have decided to close my account with them. But before doing so i emailed them and asked why and this is the response I got got.

==================================================================

Dear XXXXXX,

Hello, this is Shirley. I will be happy to assist you with your question regarding your PayPal account.

From your email I understand that you want to know why we suspended Cryptome's account, right?

First I am very sorry to tell you that we cannot release the information to a third party for security reasons. But we will not limit our user's account for no reasons unless there should be some things happened to this PayPal account. I do not know why Cryptome writes this massage on internet, but we will not keep our user's money.

If you should have some questions about this problem could you please let Cryptome contact us directly?

Anyway I do not think it is profitable to upload this massage on internet.

If you need any other further assistance, please do not hesitate to contact us.

It is my pleasure to assist you. Thank you for choosing PayPal.

Sincerely,

Shirley

Copyright © 1999-2010 PayPal. All rights reserved.

Consumer advisory: PayPal Pte Ltd, the Holder of the PayPal™ payment service stored value facilityy, does not require the approval of the Monetary Authority of Singapore. Consumers (users) are advised to read the terms and conditions carefully.

==================================================================

Not only did they not answer my question they didnt even address what I asked them, and went off as they did in the email above. I wouldnt have sent it to you but they said not to so thats good enough for me to let you know. You can post the copy of the message of their reply email to me if you want as well as I have closed my account. Anyway keep up the good work and do what you do, if not only for the simple reason that its the right thing to do.

__________

A14 sends:

I too have closed my PayPal account in support of your claims.

__________

A13 sends:

Just to continue the support, myself and my co-workers are all shutting down our accounts at paypal also due to their unprofessional handling in this case. I cannot trust them after what has occurred, and the idea of them having a credit card number of mine is appalling at this stage. Continue the good work.


From: "Muller, John" <jmuller[at]paypal.com>
To: "cryptome[at]earthlink.net" <cryptome[at]earthlink.net>
Date: Mon, 15 Mar 2010 16:29:17 -0700
Subject: PayPal

Dear Mr. Young:

I wanted to reach out and apologize for PayPal's restriction of Cryptome's account. As the head of PayPal's legal department, I am responsible for the policies that govern the use of our service. While our acceptable use policy states that PayPal cannot be used for activity that violates intellectual property rights or applicable laws, there is sometimes ambiguity when determining whether specific information published by sites like yours is in violation of that policy.

In this case, I believe the initial decision on your account was wrong, and we have reversed the restriction. I've personally followed your site over the years and made a small donation several years ago, so I'm particularly sorry for the inconvenience this has caused you.

Sincerely,

John Muller
Vice President - Legal & Compliance
PayPal, Inc.

__________

To: "Muller, John" <jmuller[at]paypal.com>
From: John Young jya[at]pipeline.com
Date: Mon, 16 Mar 2010 07:25 -0500
Subject: PayPal

John Muller
Vice President - Legal & Compliance
PayPal, Inc.

Mr. Muller,

Your apology is inadequate for the harm caused by PayPal's actions to me, my website Cryptome.org and its donors.

PayPal has never provided a complete and credible explanation for its limitation of my account and confiscation of $5,300.

Anuj Nayar, PayPal's global director of communications senior media representative alleged to Andrew Orlowski of The Register that Cryptome was suspected of illegal activity without providing proof.

Stephanie, PayPal's representative said to me by telephone that Cryptome's stated purpose was the cause of the limitation although nothing in the purpose is not allowable under law of the United States nor in violation of PayPal's acceptable use policy.

PayPal's limitation caused my refund of $5,300 to donors to Cryptome in order to counter your unilateral confiscation of the funds without substantiation.

PayPal's actions have caused damage to my reputation and Cryptome's, loss of funds and impugnment of the intentions of hundreds of supporting donors.

A meaningful PayPal response for its unsubstantiated attack on me, my web site and donors would address these serious damages and provide an amelioration commensurate with their gravity.

Your apology has not come close to that and is therefore rejected as insulting and unacceptable.

John Young
Cryptome.org


A12 sends:

I've been an avid reader for about 10 years now, and I finally have a compelling enough reason to ditch paypal for good! Thanks!

----- Forwarded message from service@paypal.com -----
Date: Thu, 04 Mar 2010 19:00:40 -0800
From: "service@paypal.com" <service@paypal.com>
Subject: Your Closed Account Status
To:

Hello ,

We are sorry that you have decided to close your PayPal account. With millions of members in dozens of countries and regions across the globe, PayPal is continually improving and expanding its award-winning services. ...


March 15, 2010

A11 sends:

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A10 sends:

I have closed my account with Paypal because of their arbitrary return of my donation to you without prior consultation, as well as their treatment of you and the Cryptome site.


A9 sends:

Just to let you know I have closed my Paypal account. I wrote in Paypal's comment section at the time of closing the account that it was my response to their handling of Cryptome.org Paypal account.

----- Original message -----

From: "service[at]intl.paypal.com" <service[at]intl.paypal.com>
To:
Date: Sun, 14 Mar 2010 13:53:49 -0700
Subject: Your Closed Account Status

Hello ,

We are sorry that you have decided to close your PayPal account. With millions of members in dozens of countries and regions across the globe, PayPal is continually improving and expanding its award-winning services. ...


14 March 2010

A8 sends:

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A7 sends:

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A6 sends:

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From: <paypal.feedback[at]echosurvey.com>
To: <cryptome[at]earthlink.net>
Subject: PayPal Needs Your Feedback
Date: Sat, 13 Mar 2010 02:34:02 -0600

Dear John Young,

We understand that your PayPal account may have been temporarily limited due to questions or concerns by our Account Review team. Thank you very much for your cooperation during this process. We are pleased that your account has now been reinstated.

As part of PayPal's Commitment to excellence, we would like to ask you to take just a few minutes to answer questions about PayPal's account limitation process.

To respond to our survey, please click on the web address below. If that does not work, please cut and paste the entire web address into the address field of your browser.

NOTE: Please respond within five days. After 5 days, this invitation will expire.

http://surveys2.incontact.com/paypal/survey_paypal.taf?survey_id=1564&user_id=1756EBA9-9E6B-4B70-8D10-2B13A57DD86F

Thank you for your feedback and continued business with PayPal!

Sincerely,

PayPal Customer Support

** An important note from the survey vendor **

PayPal, as the party who controls the data collected in this survey, may use your responses together with existing data it has about you to ensure its products and services meet your needs. PayPal will treat data collected from you in accordance with PayPal's privacy policy. To review this privacy policy, please contact PayPal or visit PayPal's web site.

If you want to be excluded from future surveys and survey correspondence, please click below:

http://surveys2.incontact.com/paypal/opt_out.taf?id=1756EBA9-9E6B-4B70-8D10-2B13A57DD86F&client=paypal


Date: Thu, 11 Mar 2010 07:24:12 -0800
Subject: Your bank account has been removed
To: John Young <cryptome[at]earthlink.net>
From: "service[at]paypal.com" <service[at]paypal.com>

PayPal logo

Dear John Young,

This is to confirm that you removed your JP Morgan Chase X-5265 account from your PayPal account on Mar 11, 2010.

To link another bank account to your PayPal account (you may have up to 8 bank accounts on file), go to www.paypal.com?cmd=_profile-ach-add.

Thanks,PayPal

This email was sent to cryptome[at]earthlink.net, because your email preferences are set to receive these types of communications from us. Modify preferences

(c) 2009 PayPal Inc. All rights reserved. PayPal is located at 2211 N. First St., San Jose, CA 95131.

PayPal Email ID PP1430


Date: Thu, 11 Mar 2010 07:26:53 -0800
Subject: Your credit card information has been changed
To: John Young <cryptome[at]earthlink.net>
From: "service[at]paypal.com" <service[at]paypal.com>

Hello John Young,

On Mar 11, 2010, the credit card ending in 8330 was removed from your PayPal account.

Thanks,

PayPal

You are receiving this email notification because this email address is listed as the administrative contact email for your PayPal account.

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.

PayPal Email ID PP076


A3 sends 11 March 2010:

I never was one to follow others or orders. And I certainly don't like a monopoly on payment methods through Ebay. To hell with them. I attached a .bmp of the screen when canceling my account.

[Image]


A2 sends 10 March 2010:

Just wanted to continue the inspiration for taking a stand against PayPal. I have attached a screen shot of me closing my account.

[Image]


A writes from Sweden 10 March 2010:

I have today closed my account with PayPal and left an explanation why, citing their actions against Cryptome. I hope everyone else does the same. Keep up the good show.


10 March 2010. Checked the Cryptome account and it appears to be back in full operation. Likely another PayPal ploy, hoping the FU will just go away, without apology, without admission of stupidity, declaring everything was done as it should have been, according to the arrogant rules of Microsoft, et al.

[Image]

Date: Wed, 10 Mar 2010 15:48:23 -0800
From: service[at]paypal.com
to: cryptome[at]earthlink.net
subject: Your PayPal Account Access Has Been Restored

Hello John Young,

Our review is complete and we have restored your account.

We appreciate your patience and thank you for your help in making PayPal the safest and most trusted online payment solution.

Thanks,

PayPal

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.

----------------------------------------------------------------

PayPal Email ID PP820


10 March 2010.

About 1:30PM today Stephanie LNU of PayPal telephoned Cryptome to say the measely $120.00 balance in the account could be withhdrawn but the limitation on use (blockage) of the account will remain. Stephanie said the grounds for the limitation is the stated purpose of Cryptome, which she read on the telephone, saying, I am reading from the Cryptome site:

"Cryptome welcomes documents for publication that are prohibited by governments worldwide, in particular material on freedom of expression, privacy, cryptology, dual-use technologies, national security, intelligence, and secret governance -- open, secret and classified documents -- but not limited to those. Documents are removed from this site only by order served directly by a US court having jurisdiction. No court order has ever been served; any order served will be published here -- or elsewhere if gagged by order. Bluffs will be published if comical but otherwise ignored."

Cryptome said nothing in that purpose is illegal as the PayPal spokesperson wrote Andrew Orlowski of The Register:

"... we don't allow PayPal to be used for items that encourage, promote, facilitate or instruct others to engage in illegal activity."

Cryptome said that if the purpose was to engage in illegality Cryptome would be closed by the authorities.

Stephanie said that the account limitation is not based on a charge of illegality.

Cryptome asked if she was aware of the email making this charge sent to Orlowski. She said no. Cryptome said read it on Cryptome.

Stephanie said PayPal has a right to decide who uses its services and that Cryptome does not meet its standard due to the activity described in its statement of purpose.

Cryptome asked if that would be put in writing so it could be published to counter the unsubstantiated very serious allegation of illegality. She said no, nothing she has said will be put in writing.

Cryptome said that if PayPal will not put its explanation in writing then it is surely a lie told to conceal some hidden reasons for limiting the account.

Stephanie said I am not lying.

Cryptome said you claim to be unaware of the serious PayPal allegation of illegality by Cryptome. You claim to know only generalities not the details about how decisions are made to limit accounts. You admitted you did not know that the purpose of Cryptome is legal. You have refused to put your comments in writing. You have avoided giving believable information about how PayPal decided to limit Cryptome's account and confiscate its funds, even though the PayPal practice is widely used not only on Cryptome but in thousands of other instances. You are not credible as a spokesperson -- you have said nothing of substance over what has been previously sent to Cryptome, now posted on the site. For these reasons you are a liar aiding PayPal to conceal its unscrupulous practices.

_______

Shortly this email arrived:

Date: Wed, 10 Mar 2010 10:23:32 -0800
Subject: Your PayPal Funds are Eligible for Withdrawal
To: John Young <admin[at]cryptome.org>
From: "service[at]paypal.com" <service[at]paypal.com>

Hello John Young,

Your PayPal funds are now eligible for withdrawal.

You may transfer the funds directly to your bank account via online bank transfer or you may request a check from PayPal. Please let us know how you would like to receive the funds by logging in to your account.

As a reminder, access to your account will remain limited.

While access to your account is limited, you may:

* place logos into your auction listings or on your website
* update your account information
* withdraw funds from your account

You may not:

* send or request money
* receive payments
* add funds to your account
* close your account

Thank you for using PayPal.

Sincerely,

The PayPal Team

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.

PayPal Email ID PP524


10 March 2010

Subject: Query re: Cryptome and PayPal
Date: Wed, 10 Mar 2010 12:22:22 -0000
From: "Karen Friar" <karen.friar[at]zdnet.co.uk>
To: <jya[at]cryptome.org>, <jya[at]pipeline.com>

Dear Mr. Young,

I'm writing from ZDNet UK. We'd like to cover the dispute between yourself and PayPal over the funds in your PayPal account related to Cryptome. I've looked at the posts on cryptome.org about this issue and wanted to check with you regarding the statement sent to us by PayPal (which was also posted to the site):

All funds associated with Cryptome have been released. Due to our privacy policy, we can't provide any further details about this account. PayPal's Acceptable Use Policy clearly states that we don't allow PayPal to be used for items that encourage, promote, facilitate or instruct others to engage in illegal activity. The full policy can be viewed here.

Can you confirm that all funds in the account in question have been released? I am also contacting PayPal to ask for further details about the account, as you have requested that these be provided to outside inquirers.

Any help you can give would be appreciated.

Thanks,

Karen

Karen Friar
Community and News Editor, ZDNet UK
T 020 7021 1225 M 07726 900 969
5-11 Lavington Street, London SE1 0NZ

ZDNET UK
ZDNet UK is a property of:
CBS Interactive
BNET UK | CNET Direct | CNET UK | GameSpot UK | silicon.com | TV.com | ZDNet UK
Registered office 100 New Bridge Street, London EC4V 6JA. Company No. 3851534. VAT No. 814619332.
Please consider the environment before printing this email.

From: Tom Espiner
Sent: 10 March 2010 10:18
To: Karen Friar
Subject: FW: Cryptome

From: Sarah Tye [mailto:SarahT[at]lansons.com]
Sent: 10 March 2010 10:18
To: Tom Espiner
Subject: Cryptome

Hi Tom,

I hope you’re well.

I just wanted to follow up on the Cryptome case we discussed yesterday. I’m really sorry I wasn’t able to provide you with a comment yesterday but as I explained it was being looked after by the American team so I’m afraid I had to wait for them to come back to me.

Apologies if you’ve already seen this but I just wanted to make sure you had it. Below is the official comment from PayPal. I hope it’s useful and ties up the story.

Kindest regards,

Sarah

All funds associated with Cryptome have been released. Due to our privacy policy, we can't provide any further details about this account. PayPal's Acceptable Use Policy clearly states that we don't allow PayPal to be used for items that encourage, promote, facilitate or instruct others to engage in illegal activity. The full policy can be viewed here.

Sarah Tye
Lansons Communications
24a St John Street, London, EC1M 4AY
Direct +44 (0)20 7294 3633
Email saraht[at]lansons.com
Web www.lansons.com

‘Agency of the Year’ 2008 at The Financial Services Forum Awards for Marketing Effectiveness
‘Agency of the Year’ 2007 (PRCA), 2004 (PR Week), 2002 (CIPR), 1995 (PR Week)
Best City Campaign (PR Week) 2008, Best Public Affairs Campaign (PR Week), 2008

Ranked 9th in the UK’s 50 Best Workplaces 2009 (Great Place to Work® Institute) and Top 50 for five years in a row

The information contained in this message may be CONFIDENTIAL and is intended for the addressee only. Any unauthorised use, dissemination of the information, or copying of this message is prohibited. If you are not the addressee, please notify the sender immediately by return e-mail and delete this message. Although this e-mail and any attachments are believed to be free of any virus, or other defect which might affect any computer or system into which they are received and opened, it is the responsibility of the recipient to ensure that they are virus free and no responsibility is accepted by Lansons Communications LLP for any loss or damage from receipt or use thereof. Lansons Communications is the trading name of Lansons Communications LLP. The views expressed are of the individual, and do not necessarily reflect the views of Lansons Communications LLP.

__________

Subject: Query re: Cryptome and PayPal
Date: Wed, 10 Mar 2010 08:07AM
To: "Karen Friar" <karen.friar[at]zdnet.co.uk>
From: <jya[at]cryptome.org>, <jya[at]pipeline.com>

Dear Karen,

PayPal is lying to cover unknown substerfuge by itself by invocation of a privacy policy now more often used by large corporations to hide corporate malfeasance against customers rather than protect them.

No funds have been released by PayPal, my account remains blocked, and funds cannot be withdrawn.

I have this morning posted on Cryptome several screen shots of my PayPal account showing evidence of PayPal's lying.

I refunded the bulks of what was in the account at the time of blockage, about $5300, on my initiative to remove control by PayPal which said it would deny access to the funds for six months, then, might release them or might not.

It is certain that PayPal attacked Cryptome for posting its secret arrangements with authorities to spy on customers

http://cryptome.org/isp-spy/paypal-spy.pdf

PayPal is following Microsoft's recent example in this attack. DMCA infringement or unsubstantiated allegations of illegality are the pretexts for these attacks when what is intended it to conceal embarrassing and unethical behavior toward the public.

Emphasis: Privacy policy is a deception to conceal corporate misbehavior against customers. DMCA is a means to censor the web as EFF and others have vigorously argued.

Please use any of this or the material on Cryptome.

Best regards,

John
(US) 212-873-8700


9 March 2010

From: Andrew Orlowski <andrew.orlowski[at]theregister.co.uk>
To: John Young <jya[at]cryptome.org>, "jya[at]pipeline.com" <jya[at]pipeline.com>
Subject: Fwd: Cryptome
Date: Tue, 9 Mar 2010 23:41:09 +0000

Really?

Begin forwarded message:

From: "Nayar, Anuj" <Anuj.Nayar[at]paypal.com>
Date: 9 March 2010 10:27:53 PM GMT
To: "andrew.orlowski[at]theregister.co.uk" <andrew.orlowski[at]theregister.co.uk >
Cc: "Nayar, Anuj" <Anuj.Nayar[at]paypal.com>
Subject: Cryptome

Hi Andrew

I saw your story in the Register re Cryptome.

I can confirm that all funds associated with Cryptome have been released.

Due to our privacy policy, we can't provide any further details about this account. PayPal's Acceptable Use Policy clearly states that we don't allow PayPal to be used for items that encourage, promote, facilitate or instruct others to engage in illegal activity. The full policy can be viewed here

Anuj Nayar / director, global communications
direct 408.967.5730 / cell 408.239.9516
skype anuj_nayar
2211 North First Street
San Jose, CA 95131

__________

To: Andrew Orlowski <andrew.orlowski[at]theregister.co.uk>
From: John Young <jya[at]cryptome.org>, "jya[at]pipeline.com" <jya[at]pipeline.com>
Subject: Fwd: Cryptome
Date: Tue, 9 Mar 2010 07:40:06 +0500

PayPal is a fucking liar, a cheat and a thug, quote me.

Cryptome refunded about $5300 on March 5, 2010 without action by PayPal while the account was frozen. No funds have been withdrawn. The account was, and is still, frozen except for the capability of making refunds which I chose to do to get the wad out of PayPal's hands where PayPal could use them for its own purposes contrary to the purposes of the donors.

See attached screenshots made just now of our account and an excerpt of the account history downloaded today showing refunds by me, not releases by PayPal.

Another screenshot today shows that funds cannot be withdrawn.

I left about $120 in the account to head off PayPal confiscating from my bank account payments for its refund services -- which it claims it has a right to do if there is insufficient funds in the account.

I sent a letter yesterday to PayPal urging it to release all information about the account to anyone who inquires and releasing it from obligation under the privacy policy. Copy attached.

This was sent in response to an email from PayPal to an inquirer which was forwarded to me.

PayPal never told me the reason for blocking was for illegal activity, it merely said the account was risky without providing details or substantiation. This is a pattern it has followed with hundreds of others.

I want PayPal to document the illegality, make it public, don't hide behind unproven allegations sent to you without proof. It will try to hide behind privacy policy, a current scam used to hide unscrupulous actions by a host of giant thuggish firms.

Use any of this message and images.

John

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[Image]


8 March 2010

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A sends 6 March 2010:

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6 March 2010

PayPal has confiscated donations made to Cryptome since February 24, 2010. The donations have have been refunded by Cryptome rather than leave them in the untrustworthy control of PayPal for purposes contrary to those of the donors. The total refund was about $5,300, not much but a peak in donations.

The timing of the confiscation corresponds to the recent Microsoft-Network Solutions copyright imbroglio and public attention given to the lawful spying guide series including those of PayPal. PayPal's legal agreements describe a wide range of prohibitions -- among them DMCA infringement, counter-terrorism, violations of AUP and catch-alls -- for use of its services and urges reporting of violations. It "limits" (suspend and/or close) an account without fully explaining the reasons, some of which may be secret under spying law, others kept confidential to avoid law suits or bad publicity.

Google lists thousands of instances of this asymmetrical high-handedness which is remarkably similar to that used by Microsoft and Network Solutions to shutdown Cryptome ten days ago. And it fits the business model of governments for financial-spying by use of informants and bank secrecy agreements.

It is likely Cryptome was targeted by an informant or by the recent donation upsurge tripping a PayPal algorithm as yet another gov-com-business model risk. An anecdote in accord with this minimizing of risk, maximizing of profit: an Internal Revenue Service auditor described its business model to Cryptome that "unpaid public service was not desirable, IRS wanted taxpayers to make more money in order to pay more taxes."

To support Cryptome use means other than PayPal.

Mail: John Young, Cryptome, 251 West 89th Street, New York, NY 10024
Checks/Money Orders: Make out to "John Young"


A PayPal victim asks 6 March 2010:

I was reading Cryptome earlier this morning about the PayPal "confiscation." How the money was "confiscated" I understand, but were there other authorities involved? And if so does that mean that everybody's home address could be at risk also?

Cryptome: PayPal has not indicated that authorities are involved but if so there is a law against revealing it. That is the very problem we are trying to call attention to by publishing the series on confidential lawful spying guides used by ISPs to handle government demands for information.

Nobody knows what PayPal will do with its user data. Its privacy policy describes customer data protection measures, but few if any of these policies are trustworthy defense against government spying and the money to be made from cooperating with government.

The best I can offer is that using the Internet exposes all your data to spying by those who sell services, operate and regulate the system, PayPal is not at all the only threat. Your operating system is probably much more dangerous.


5 March 2010

The Cryptome account has been shut down by PayPal. All DVDs requested through PayPal have been mailed and email confirmation sent. If you didn't get an email confirmation send a note to cryptome[at]earthlink.net.

PayPal shutdown shenanigans are amply and angrily covered on Google (a poster says, "look, it's a banking service, expect to get screwed, first open-arms welcome, then back-stab treatment;" another says "the shutdown reason is always secret if its government.") and the matter is recounted in line with Cryptome's public information on gov-com censorship topics.

Cryptome has published two of PayPal's lawful spying docs:

http://cryptome.org/isp-spy/paypal-spy.zip

http://cryptome.org/isp-spy/paypal-spy2.pdf

The DVDs were and are intended to get the archive widely distributed as beneficial public information and partial protection against the shutdown of the site. Donations are welcome but not essential to continued operation -- Natsios Young Architects has been since 1996 the primary funding source. Shortly the PayPal topic will sink into the archive swamp.

Consider using cash, check or money order until other online payment has been arranged. Or just email a shipping address, forget about pay, Pal.

PayPal sends:

Date: Fri, 05 Mar 2010 04:03:37 -0800
to: cryptome[at]earthlink.net
subject: Update to Your Account, PP-910-103-553
From: <service[at]paypal.com> SIZE=1555

Dear John Young,

We have reviewed your PayPal Account, and due to the excessive risk involved, we would like to begin parting ways in a manner that is least disruptive to your business.

-----------------------------------

Disbursement options

-----------------------------------

Option 1. If you owe refunds to any of your buyers, you can use the money in your PayPal account to refund them.

To refund your buyers:

1. Log in to your PayPal account.
2. Click "Contact Us" at the bottom of any page.
3. Click "Contact Customer Service."
4. Under "Choose a Topic," select "Sending/Receiving Money."
5. Under "Choose a Subtopic," select "Refund/Cancel a Payment."
6. Click "Continue" and follow the instructions to refund payments.

Option 2. Money in your PayPal account will be held for 180 days. After 180 days, we'll email you information on how to receive your funds.

We regret any inconvenience this may cause.

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.

Sincerely,

Jennifer

PayPal Account Review Department
PayPal, an eBay Company

4 March 2010


A writes:

If you have not already done so, get another payment processor to handle your transactions. I went through exactly the same thing with PayPal, identical emails, etc. They froze the account for 6 months on the theory that they might have to refund all the transactions.

If you have any bank accounts, credit card/debit card accounts associated with your PayPal account be aware that PayPal will draw from those accounts without notice to you. Better to open new bank accounts/debit card accounts immediately and transfer all your funds out of your present accounts to your new accounts.

I use ProPay and recommend them. Also, Google has a great payment processing system which you can access with your Google account.

Probably best to abandon PayPal now and not rely on any efforts on their part to reinstate your account.


It appears that PayPal is responding to, or preparing, a Financial Crimes Enforcement Network (FinCEN) Suspicious Activity Report (SAR) about Cryptome. Cryptome's account was locked on March 3, 2010; money can come in, none can be withdrawn. PayPal has asked Cryptome to explain its "business model." The first email:

Date: Wed, 03 Mar 2010 09:45:04 -0800
From: service[at]paypal.com
To: cryptome[at]earthlink.net
Subject: Notification of Limited Account Access RXI034

Dear John Young,

As part of our security measures, we regularly screen activity in the PayPal system. During a recent screening, we noticed an issue regarding your account.

We have observed activity in this account that is unusual or potentially high risk.

Case ID Number: PP-910-103-553

For your protection, we have limited access to your account until additional security measures can be completed. We apologize for any inconvenience this may cause.

To review your account and some or all of the information that PayPal used to make its decision to limit your account access, please visit the Resolution Center. If, after reviewing your account information, you seek further clarification regarding your account access, please contact PayPal by visiting the Help Center and clicking "Contact Us".

We thank you for your prompt attention to this matter. Please understand that this is a security measure intended to help protect you and your account. We apologize for any inconvenience.

Sincerely,

PayPal Account Review Department

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, log in to your PayPal account and click the Help link in the top right corner of any PayPal page.

PayPal Email ID PP522


Cryptome provided the information at the website as requested on March 3. Nothing happened. An email request was sent to Paypal, which answered with these instructions (which had already been followed):

From: service[at]paypal.com
To: cryptome[at]earthlink.net
Date: 3 Mar 2010 19:02:05 -0600
Subject: Limited Account

Dear John Young,

To view the details regarding your limited account access, please follow these steps:

1. Log in to your PayPal Account at https://www.paypal.com/ by entering your email address and password in the Member Log In box

2. Click on the 'Click to Resolve' link on your Account Overview page

3. Click the 'Why' link to view the Limited Account Access Details

You will be able to view what steps need to be taken to restore your account access

Please Note:

* Appeals cases and faxed documentation are worked in the order they are received

* If your account access is limited, please see the section entitled 'How can I restore my account access?' for information on how to restore your account access

If you have any further questions, please feel free to contact us again.

Thank you for using PayPal!

The PayPal Team

Please do not reply to this e-mail. Mail sent to this address cannot be answered.


Cryptome went to the PayPal site and found that there were no open items to be answered. Another email was sent and PayPal responded with this:

Date: Thu, 04 Mar 2010 06:16:55 -0800
From: service[at]paypal.com
to: cryptome[at]earthlink.net
subject: Request for additional information PP-910-103-553 RXI034

Dear John Young,

Your account access limitation cannot be lifted at this time. PayPal requests that you provide additional information regarding the transactions you are processing.

Please explain your business model.

We would like to obtain as much information as possible about the above transaction(s), in order to expedite this investigation.

Sincerely,

Anna
PayPal Account Review Department
PayPal, an eBay Company


Cryptome sent Anna by email information about the site. The email bounced. This morning Cryptome telephoned PayPal and spoke to an agent, who directed Cryptome to the PayPal site where she had added a new item for Cryptome to provide information. The information was entered in a form along with other explanations of transactions:

The PayPal transactions are donations to Cryptome.org a public service, non-commerical, website, for DVD copies of the open, free, archive. It is not a business. See the Wikipedia entry:

http://en.wikipedia.org/wiki/Cryptome

During the past two weeks there have been news reports about Cryptome.org that has led to an unusual increase of donations. Usually donations come in once or twice a week, as you can see from our PayPal account. Most recently donations have dropped to a customary small number after the recent surge.

Expenses for operating Cryptome.org are not fully covered by donations, by far most are paid by me.

I am a professional architect in New York City, and have provided unpaid public service parallel to professional practice since 1968. Cryptome.org is part of that contribution.

Sincerely,

John Young


The information requested by PayPal appears to fit that required to file a Suspicious Activity Report.

http://en.wikipedia.org/wiki/Suspicious_activity_report

Suspicious Activity Report

The purpose of the Suspicious Activity Report is to report known or suspected violations of law or suspicious activity observed by financial institutions subject to the regulations of the Bank Secrecy Act (BSA). In many instances, SARs have been instrumental in enabling law enforcement to initiate or supplement major money laundering or terrorist financing investigations and other criminal cases.[citation needed] Information provided in SAR forms also presents FinCEN with a method of identifying emerging trends and patterns associated with financial crimes. The information about those trends and patterns is vital to law enforcement agencies and provides valuable feedback to financial institutions.[citation needed]

[edit] Who reports suspicious activity

The report can start with anyone at a bank, from a teller to a back office clerk to a manager. They are generally trained to be alert for suspicious activity, such as people trying to wire money out of the country without identification, or someone with no job who starts depositing large amounts of cash into an account. Employees are trained to communicate their suspicion up their chain of command where further decisions are made about whether to file a report or not.

Many different financial industries are now required to file SARs. Each SAR form was specifically designed to accommodate respective institution types such as depository institutions, money services businesses (MSBs) or the securities and futures industry.

For example, MSBs such as check cashing establishments and money remitters use the SAR-MSB form, while casinos use the SARC form.

[edit] When is a SAR filed?

FinCEN requires a SAR report to be filed by a financial institution when the financial institution suspects: insider abuse by an employee; violations of law aggregating over $5,000 or more where a subject can be identified; violations of law aggregating over $25,000 or more regardless of a potential subject; transactions aggregating $5,000 or more that involve potential money laundering or violations of the Bank Secrecy Act; computer intrusion; or when a financial institution knows that a customer is operating as an unlicensed money services business.

SAR confidentiality

Unauthorized disclosure of a SAR filing is a federal criminal offense.[1] In other words, any bank employee who has a suspicion is trained to only discuss the suspicion with their supervisors, and not anyone else, including the customer who is under suspicion and coworkers. The fact that an SAR has been filed is also supposed to be a secret.

An individual or organization is precluded from discovering the existence of a SAR filed that includes their name. Financial institutions undertake an investigation process prior to filing a SAR to assure that the information reported is appropriate, complete, and accurate. This process will often include review by financial investigators, management and/or attorneys prior to filing.

One technique used by money launderers is to transfer money in small amounts to avoid triggering the amount for a SAR. The surge in small donations to Cryptome fit that pattern.

There is a possibility that a SAR was initiated by another party for suspicions about activities other than money laundering. Or the PayPal lock is the result of some other aggression. The website shows no open complaints about Cryptome (one complaint led to a refund and was closed).

Cryptome will report PayPal's determination to maintain the lock, shut the account, and the funds confiscated by forfeiture to FinCEN. Or re-open it as if all is well following the Microsoft-NetSol-Gov invasive spying business model.

PayPal's policy for disclosing customer information and for cooperating with law enforcement:

http://cryptome.org/isp-spy/paypal-spy.zip

http://cryptome.org/isp-spy/paypal-spy2.pdf