The following email was sent by PayPal to TorGuard.
When we reviewed your account, we noticed that your activity violates some of the agreements you have with us. Because of this, weve limited your accounts and can no longer offer our services to you. Youll still be able to log in to view your transaction history, but you wont be able to send or receive money.
I believe this is the exact issue faced by Extabit, many other cyberlockers and VPN providers. The difference is Extabit depends solely on Paypal as the only payment method. Now the worst case scenario which has already happened to TorGuard might happen to Extabit as well: Paypal refused any further negotiation and froze their money for good.
If the worst case scenario did happen, I am positive that Extabit team will come up with the best possible solution to ensure that no partners losing money at the end of the day. However, Extabit should consider using Paypal only for affiliates payout, all other premium buying options should switch to alternative payment processors. Guess you guys have learned this lesson not to put all eggs in one basket, right?
Anyway, many of us here will continue to support you as usual, stay alive and live Extabit. Paypal sucks the life out of it, but life goes on.
Until then, lets only hope the best will happen...
PS: email originated from torrentfreak