PayPal has frozen his account amid questions over the source of funds
Phil Galfond, a poker pro and founder of Run It Once, faced a contentious situation with PayPal after the platform froze $117,000 in his account for six months. The funds, believed to be tied to his Beyond the Game poker-coaching business, were unexpectedly made accessible following public outcry and pressure. Galfond shared his frustration on social media, highlighting broader issues with PayPal’s history of freezing funds without clear justification, particularly for gambling-related transactions.
PSA to new business owners:
I took $117k in payments via @PayPal in July.
All $117k is still on hold — a precaution for a new biz with big transactions.
I tried to refund someone & they wouldn’t let me (lol?)
I’m sure I’ll get my $ someday but this would kill some businesses.
— Phil Galfond (@PhilGalfond) November 18, 2024
This case echoes a similar incident involving poker legend Chris Moneymaker in 2021, when PayPal froze over $12,000 linked to a private daily fantasy sports league. Moneymaker’s funds were eventually released, but the episode created legal challenges against the platform. Attorney Eric Bensamochan led efforts to hold PayPal accountable, citing numerous reports of unexplained account freezes. A class action suit eventually moved forward, with Lena Evans of the Poker League of Nations as a lead plaintiff.
For Galfond, the ordeal demonstrated the power of public and industry support. Less than 24 hours after voicing his complaints, PayPal reversed its decision and unfroze his account. Though relieved, Galfond criticized PayPal’s practices, calling them negligent and harmful to users reliant on the platform for business operations. His comments resonated with others in the gambling and poker communities, who have experienced similar frustrations with payment platforms.
This situation underscores ongoing tensions between financial services and gambling professionals, raising questions about regulation, fairness, and transparency in payment processing. For industry figures like Galfond and Moneymaker, the repeated pattern of abrupt fund freezes highlights a need for reform to prevent harm to legitimate businesses and individuals reliant on these platforms.
