maphew writes "Paypal arbitrarily decided to withold the donations made to the TortoiseSVN project via Sourceforge's "donate to this project". After several days and unfruitful biolerplate exchanges the project lead, Stefan Küng, finally managed to get the account restored, and thereby access the money. However Paypal made it clear that future donations are not allowed, with the threat that if there are any the account will be frozen again. The grounds Paypal gave for freezing Küng's account appears to be because someone used Paypal Singapore to donate to his project. There is an associated ticket open with SourceForge, #13993, about warning SF users. As yet there is no information from SF as to how they will respond to this troubling development (it's been 5 days).
There was a similar story 2 weeks ago, PayPal Withholding Indie Game Dev's €600,000 Account"
Link to Original Source