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Froste banned from PayPal after $95K Twitch charity donation

Variety Twitch streamer, Froste, was shocked when his PayPal account was shut down after he received a generous $95,000 Twitch donation during a Gamer’s Outreach charity live stream.
Froste banned from PayPal after $95K Twitch charity donation

Former 100 Thieves Twitch streamer, Froste has supported the kid’s charity organization, Gamer’s Outreach for a long time. Recently, Froste celebrated a massive milestone after smashing his 50,000 USD charity subathon goal in just 3 days. This was despite 16 days still remaining of the subathon.

After a generous donor gifted nearly double the donation goal, the total donation surged to nearly $150,000. Sadly, things fell into disarray after Froste received a notification that his PayPal account had been blocked.

Froste locked out of PayPal after $95K donation

Froste reported that his PayPal account was banned after he received a generous $95,000 donation during a charity live stream for Gamers Outreach and has threatened legal action against the company.

froste twitch 100 thieves gamers outreach charity stream
Froste to sue PayPal after charity donation locks him out of PayPal account (Picture: Froste / Twitch)

He posted on the 21st of July on Twitter, saying: “Hey, PayPal! I am a Twitch streamer who is currently doing a charity live stream for Gamers Outreach and last I received a massive $95,000 donation from a generous philanthropist. Why is my PayPal account banned now with $64,000 still in it?”

In the tweet, Froste shared screenshots indicating that “because of potential risk exposure” his account would be “permanently limited”. According to the notice, “any money in [his] balance will be held for 180 days” and Froste will not be allowed to transact with the account during that period.

froste charity donation leaves him locked out of paypal account
PayPal notice on Froste's account (Picture: Twitter / Froste)

Froste was clearly frustrated by the incident and subsequently attempted to message PayPal directly, albeit to no avail. “Go f*** yourselves”, Froste wrote in his DM to PayPal. In a follow-up tweet, he said that he could be going to pursue legal action after PayPal failed to assist him. 

A Redditor, who claimed to work for PayPal in the past said: “They have a whole hidden system called Risk where if something happens out of the norm on the account it shoots up a red flag”. The user went on to explain how the large donation possibly triggered the algorithm into thinking that the transaction was fraudulent.

What is arguably even more enraging is that the money (which is over $64,000) was intended to be donated to a kid’s charity but is now stuck in Froste’s PayPal account. 

froste locked out of paypal after 95k donation charity
Froste locked out of PayPal account with over $64,000 in it (Picture: Twitter/ Froste)

One Twitter user wrote: “I work for PayPal in the fraud department and I can confirm they do not give a f***, their system is literally made to stop any weird movement this is called explosive growth, but don't worry too much they might ask for some documents and provide your Twitch channel”. 

Hopefully, the situation can be remedied by Froste providing proof that the transaction was legitimate. Only time will tell whether the funds will be unfrozen so they can be donated as intended.

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Header image via Twitter / Froste / Wikimedia Commons.