PayPal sued for freezing customer accounts without explanation

PayPal faces lawsuits for freezing users' accounts without explanation, prompting claims of violating racketeering laws. — PayPal

PayPal Holdings Inc., a popular digital payment platform, violated racketeering laws by freezing customer money and refusing to provide an explanation for the move, three account holders alleged in a federal lawsuit.

PayPal, which has an estimated 325 million account holders worldwide, put a hold of as long as six months on funds for alleged violations of its 65-page user agreement, according to the complaint filed Thursday in California.