Moneymaker Builds Class Action Lawsuit Against PayPal

Last updated on May 28th, 2021

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Chris Moneymaker is not messing around. PayPal messed with his fantasy sports action, and he’s not going to take it.

It’s more complicated than that, obviously. And Moneymaker isn’t alone. But it was a fantasy sports league transaction that prompted the decision to take on PayPal. Poker players have long complained, mostly quietly, about the fine print of the payment processor’s rules regarding funds that may or may not pertain to gambling. Moneymaker now wants those players to speak up.

As he began to post about this situation on social media, others became more vocal with their complaints. This is shaping up to be a significant class action lawsuit if they all team up.

What Had Happened Was…

Evidently, Chris Moneymaker likes fantasy sports. Millions of people do.

He and 11 friends put in $1K each to participate in a fantasy sports league in 2020 for that year’s NFL (National Football League) season. Moneymaker used his personal PayPal account to hold the funds, and his friends trusted him to do so.

In November of that year, PayPal notified Moneymaker that the company put his account on a “limited” status because he violated its user agreement. Essentially, they froze the account, referencing their 62-page document that explains acceptable uses of PayPal accounts.

Moneymaker was unable to access the funds and heard no other word from PayPal until May 2021. He hoped that PayPal would simply return the funds to all of the individuals that sent money to him, no matter what the company did with the funds in his own account. Instead, PayPal took the entire $12K, confiscating it with no particular justification.

PayPal is the nut worst. Was swapping some action a friend few years back. He sends 1k PayPal with the following note: “Good luck”….account was frozen and money removed hours later. #neveragain
— Kenny Gabbara (@KennyGabbara)
PayPal is the nut worst. Was swapping some action a friend few years back. He sends 1k PayPal with the following note: “Good luck”….account was frozen and money removed hours later. #neveragain
— Kenny Gabbara (@KennyGabbara) May 18, 2021

?ref_src=twsrc%5Etfw”>May 18, 2021

“This is straight-up theft,” Moneymaker said, “and PayPal is a payments bully.”

Moneymaker Versus PayPal

After Moneymaker posted his dilemma on Twitter, other members of the poker and betting communities contacted him to commiserate. PayPal had, in some cases, seized their funds as well.

He reached out to the Bensamochan Law Firm to discuss his options. And if the Bensamochan name sounds familiar, it is because this firm, headed up by Eric Bensamochan, represented Todd Witteles in his defense against Mike Postle. Bensamochan not only filed an anti-SLAPP claim in the case but won it when Postle attempted to walk away from the lawsuit. Just a few weeks ago, the Superior Court of California Sacramento awarded $26,982 in legal fees for Witteles.

The goal in this situation is to file a lawsuit in Federal Court against PayPal Holdings for a breach of contract, unjust enrichment, and bad faith.

Bensamochan told me, “PayPal has been confiscating customer funds with seemingly complete impunity and will no longer be tolerated. The firm is honored to be representing Mr. Moneymaker in this action.”

He would appreciate others with similar experiences to contact the Bensamochan Law Firm. They are putting the class action lawsuit together now. Moneymaker added, “I’m going to continue to use my status and my social media channels to expose these immoral and illegal practices and ask others to join my lawsuit against PayPal.”

While Moneymaker doesn’t seem opposed to retrieving the $12K seized by PayPal, he indicated a larger principle at stake. “This is less about the money – though $12,000 is a lot of money – it’s about the principle of stealing other people’s money and hiding behind thousands of words of legal mumbo jumbo that no one reads.”

Hey @paypal @AskPayPal pic.twitter.com/3AJMy0gFnw
— Chris Moneymaker ⭕ (@CMONEYMAKER)
Hey @paypal @AskPayPal pic.twitter.com/3AJMy0gFnw
— Chris Moneymaker (@CMONEYMAKER) May 18, 2021