PayPal bans GT Guard and all the company’s funds have been frozen.

PayPal continues its war against BitTorrent sites, Usenet Propviders and file-sharing sites. Henceforth GT Guard has joined the list. This means PayPal has stopped providing service to the Germany based VPN provider. In addition, all the company’s funds have been frozen. 

For those who unfamiliar, GT Guard targets BitTorrent users who use the VPN and proxy service to
download anonymously. The company has about 450 active users, 80% of whom pay through PayPal.

According to PayPal, GT Guard violated the terms of service because it linked to adult sites and its affiliation with BitTorrent became a problem. Therefore PayPal’s Brand Risk Management department explains that “file-sharing, BitTorrent and Usenet websites, as well as similar services, require prior approval from PayPal.”

GT Guard’s owner tells TorrentFreak that he would like to continue the service but that payment issues will most likely result in an exodus of customers.