Shifting Gears: Research thread on Paypal/Paxos "pseudo-crypto" offering

It's time to pull back the covers on the Paypal/Paxos partnership, which offers fake cryptocurrency support to Paypal users. As others have noted, the "crypto" that you can purchase on Paypal may not be withdrawn from Paypal, nor may users deposit actual cryptocurrency in Paypal. Finally, Paypal/Paxos will not provide private keys for "crypto" held on Paypal.

Paxos Trust (formerly ItBit) appears to deal with the US government regulatory structure. They're a NYDFS-regulated company who holds cryptocurrency custodially. Clearly, anytime the US government wants someone's crypto, Paxos hands it over without a blink. Why a Singapore-based company would have an arrangement with the USG is also a mystery.

https://unchainedpodcast.com/chad-cascarilla-on-paxoss-partnership-with-paypal/

Similar to other shady Blockstream-like fintech corporations, Paxos has plenty of investment from unknown venture funds like Liberty City Ventures (blank website).

I could use some help with this... thanks everyone