I have to admit I'm a bit surprised they relied on PayPal in the first place, but PRQ, the famed Swedish ISP created by two of the guys behind The Pirate Bay, and which (as you might imagine) was known for standing up for its users against legal threats, has had its PayPal account frozen twice
for unclear reasons. Apparently PayPal had been working just fine for three years, and then suddenly the account was frozen. Employees contacted PayPal, who told PRQ to just set up a second PayPal account for users to use until they sorted things out, and then they'd merge the two accounts. Instead... they froze the second one as well. Of course, if you follow stories involving PayPal, this is hardly uncommon. It seems to happen all too frequently with many sites that use it. PayPal works hard to try to minimize fraud, but it seems to have a super itchy trigger finger to completely shut down sites with no warning and little process for appeal. Relying on it as a sole payment offering seems to be asking for trouble.