ONLINE PAYMENT MERCHANT Paypal has frozen social networker Diaspora's account, causing the team to look for alternatives and adding fire to its opponents' cause.
In a blog post the development team expressed disappointment at the freeze, but added that it was not unusual for the payment merchant to behave in mysterious ways.
"We're sorry to say that PayPal has frozen our account, so we're currently unable to process contributions by credit card," the social network developers wrote,
"We're working as fast as we can to resolve this, and will have an alternative up ASAP. In the meantime. PayPal is notorious for arbitrary blocking of legitimate donations. We'll get this sorted out as quickly as we can."
The cause was picked up by the hacktivists of Anonymous, the group that set up opposition to Paypal after it ceased accepting donations to Wikileaks.
"#PayPal's behavior is unacceptable, which is why we have asked our lawyer to get involved.," said the @Anon_central Twitter account, while Lulzsec spokesman and hacker on the run, Anonymousabu suggested that users vacate the service.
"If you haven't already - close out your paypal accounts. Transfer your money to a credit union. Small steps we need to take for big picture," he tweeted.
Diaspora is already accepting donations from another payments provider called Stripe. That firm stepped in after the group announced that Paypal froze the $45,000 that is in its account.
According to the post Diaspora has done all it can to communicate with Paypal but so far has not had an explanation for the block.
"We had raised $45,000 in just a few days, and then PayPal froze our account. Even though we've complied with every PayPal request, including providing them with our certificate of incorporation, they still won't give us an explanation for any of their moves," they wrote.
"PayPal just sent us an email saying 'appeal denied,' where they announced that they would lock up the Diaspora community's donations for 180 days. Yes, you heard that right. PayPal gets to earn interest on all of our donations for 6 months."
We have asked Paypal for an explanation of its action or comment on the situation. µ
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