They must have not heard about Diaspora:

http://blog.flattr.net/2011/10/the-case-diaspora-and-their-frozen-45000/

---------- Forwarded message ----------
From: rysiek <[email protected]>
Date: Thu, Sep 5, 2013 at 4:09 AM
Subject: PayPal freezes MailPile's account
To: [email protected]


Hi there,

You might remember MailPile, the privacy-aware, encryption-supporting
webmail:
http://mailpile.is/

Today PayPal froze MailPile's account with $45k on it:
http://www.mailpile.is/blog/2013-09-05_PayPal_Freezes_Campaign_Funds.html
http://www.indiegogo.com/projects/mailpile-taking-e-mail-back?c=activity

PayPal's comment:
"Please provide an itemized budget and your development goal dates for your
 project"

MailPile team's comment:
"After going round and round on the phone with PayPal, I am left with the
very
 strong feeling that this entrpreneurial freedom is in jeopardy. If PayPal
has
 financial risks to mitigate, why is that specially true in our case? Are
the
 risks larger because we are successful?"

inb4 "why would they use PayPal" -- from what I've heard they didn't plan it
originally but it was brought in by popular demand.

--
Pozdr
rysiek
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