Am at paypal this is every year in compliance videos, there must be terrible and inept bureaucracy - not sure what is that side of the story. but i can see them no wanting to invite ire of regulatory punishments. go to small claims court if its a small sum. you should not keep large sums at any online outfit, paypal, coinbase or others. Even bank account is a suspect space, better stow money in money market funds for quick liquidity, its super easy to defraud it.