Oh man, c'mon . . .
It makes you wonder if PayPal was 'warned' about the possible illegality of the funds. I highly doubt that PayPal would proactively freeze the funds on their own suspicions. Of course, the notion of 'encryption without government approval' is disturbing. It implies that any conversation that the government cannot potentially eavesdrop on is illegal. That is some 1984 right there. Lavabit was brought down since they were in the US and wouldn't hand over the keys. Protonmail is in Switzerland. I suspect that PayPal is the place that the US surveillance agencies can apply pressure ATM.When we pressed the PayPal representative on the phone for further details, he questioned whether ProtonMail is legal and if we have government approval to encrypt emails.
oh dear.It implies that any conversation that the government cannot potentially eavesdrop on is illegal.