Chris Moneymaker‘s battle with PayPal reached federal court, a class-action lawsuit finally filed against the payments provider for what are claimed to be illegal account seizures. The attorney acting on behalf of those whose money was taken, Eric Bensamochan, described PayPal‘s transactions and practices as “illegal, highly questionable and akin to outright theft.”
Although 2003 WSOP Main Event champion Chris Moneymaker is no longer directly involved as a litigant, the class action lawsuit was initiated after Moneymaker had his account frozen and $12,000 “stolen” from him.
So @PayPal @AskPayPal froze my account last year and said i could access my money in 180 days. Well they straight up stole the money!!!! Money out of my account pic.twitter.com/fnQtkPw7s9
– Chris Moneymaker ⭕ (@CMONEYMAKER) May 18, 2021
With the 2003 WSOP winner’s claims going viral among the poker and online gambling world, PayPal finally relented and returned Moneymaker’s funds, but it was “too little, too late”: big Chris had already lawyered up.
well @paypal I messaged you and told you what was coming and you choose to do nothing. I got no response sooo….. https://t.co/a0YdbPjpnY
– Chris Moneymaker ⭕ (@CMONEYMAKER) June 16, 2021
“I guess @paypal chickened out and gave me my money back when they found out about the lawsuit and backlash,” Moneymaker tweeted. “Unfortunately for @paypal I have been contacted by over 50 people who have also done this. the lawsuit I am filing will continue!!!”
On the back of his refund, Moneymaker also explained:
“I will no longer be a plaintiff in the lawsuit, but an advisor and facilitator for people who don’t have a great platform to get their money back. I gave you a chance, but hell keeps on coming @paypal.”
Mike Matusow also hit by PayPal seizure.
Other poker players have also been victims of PayPal’s apparent abuse of fine print, which along with its unwillingness to respond to legitimate complaints and concerns, not to mention media inquiries.
Danielle “dmoongirl” Andersen had $20k taken from her in a similar raid, while Mike “The Mouth” Matusow previously tweeted his own story.
Matusow’s legal advice is quite different from that of Moneymaker’s lawyer, Eric Bensamochan, who told Poker.org’s Haley Hintze last summer:
“PayPal [was] clearly feeling the heat from the pending litigation. [They] thought that by simply giving Chris Moneymaker his money back, things would be over. They couldn’t have been more wrong. Mr. Moneymaker will continue to consult with the Bensamochan firm to proceed with the class action on behalf of the thousands and thousands of people whose hard-earned money PayPal has seized at will and with impunity.”
Mr. Bensamochan, acting on behalf of the plaintiffs, states in the complaint:
“PayPal essentially claimed a deduction for an expense it never paid. PayPal seized $172,206.43, while reporting only $162,517.19 to the IRS. PayPal’s transactions and practices are illegal, highly questionable, and akin to outright theft.”
The class action lawsuit, which can be viewed in full here, lists the following nine separate claims against PayPal:
- Conversion
- Civil RICO (Violation of the ‘RICO’ (Racketeering) Act)
- Electronic Funds Transfer Act Violation
- Breach of Written Agreement
- Breach of Fiduciary Duty
- Breach of Fiduciary Duty
- Violation of the California Business and Professions Code (17200)
- Business and Professions Code violation
- Unlawful enrichment
- Declaratory Relief
- Accounting
- The suit, to which additional plaintiffs may be added, seeks “general, specific and compensatory damages, including restitution, in an amount to be proven at trial.”
The filing also asks the court to award “enhanced (treble) damages, three times the amount of money damages proven at the trial of this matter,” … As well as “punitive and exemplary damages as allowed by law.”
