Gizmo 3D Printers Announce PayPal Has Frozen Indiegogo Funds

[Brian_Krassenstein]

This week, Australia-based startup Gizmo 3D Printers posted to their successfully funded Indiegogo campaign page that PayPal has effectively frozen most of the money that was raised. It looks like the company may need to suspend production until they can compel PayPal to release their money to them in full, or work out another way to get the funding needed to begin production. This delay comes at a terrible time for Gizmo 3D Printers, as they have already begun ordering parts, and are also expected to pay $10,000 in less than a month related to their attempt to patent their technology. You can learn more about this setback over on 3DPrint.com: https://3dprint.com/130939/gizmo-3d-printer-paypal/

[brbubba]

While I sympathize with them, you also have to realize that you don't run a business out of a Paypal account. Good God!

[curious aardvark]

it does seem odd.
Surely they'd withdraw that amount of money into a normal bank account.

It's also no business of paypals telling people what they can do with THEIR money.

Makes you wonder how much kickstarter pay paypal to sabotage other crowd funding sites.

[Wolfie]

It may have to do with PayPal's fulfillment regulations/requirements. Another vendor I know had funds frozen by paypal. It was a pre-order based system where people paid for a product not yet prodced. Because they didn't fulfill the "orders" promptly according to PayPal, they froze the account. The vendor had to borrow money to front the parts to build the product and show shipment of the product before PayPal would release the funds. Everyone involved (except Paypal apparently) knew it was a group buy/pre-order and would be shipped at a later date. Needless to say, he isn't ever using PayPal again.