PayPal Froze Account of Secure Email Startup ProtonMail Due to “Technical Problem”

July 2nd, 2014

Via: Gigaom:

About 6 weeks ago my colleague Barb Darrow covered a new secure email startup called ProtonMail, which was set up by a bunch of MIT, Harvard and CERN researchers who are annoyed with the NSA’s intrusive ways.

The team’s Indiegogo crowdfunding campaign has done pretty well in the last 2 weeks, thus far raising $283,675 off a $100,000 goal. But Geneva-headquartered ProtonMail, which is keen to rent servers and get the product out of beta, hit a snag on Monday when it discovered PayPal had frozen its account.

Restrictions on the account were lifted on Tuesday, with ProtonMail crediting the reversal to media coverage, but PayPal said the account had only been frozen in the first place due to a technical problem. However, when ProtonMail was trying to find out why the block had been put in place, a PayPal representative apparently asked whether the startup had sought government approval for offering encrypted services.

Research Credit: alvinroast

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