I sent my friend Josh $350 before i got disputed $100 so i wouldn't lose any money (which i later won the dispute), Then told him to send the $350 to my parents account so he didn't have to hold onto it. Then next thing we know, all 3 accounts have been locked/limited for fraud or something. They rang all 3 of us and we verified it etc over the phone, sent i.d etc. yet they have said: Unfortunately, due to excessive risk involved, our decision to leave your account in a permanent limitation status is final. Your right to appeal: PayPal will always carry out a thorough and routine investigation before closing any account. However, we appreciate that from time to time misunderstandings can happen. If you have an important query on this matter, and wish to appeal our decision, you can do so. Anyone know away around this or anything we can say/do to get the accounts unlocked and get the money off paypal?
Have you called Paypal to see if you can reach to an agreement? Paypal usually limits accounts when they notice multiple chargebacks, they assume it's scammers. Calling them can help you greatly, they've limited me a few times but nothing a call could not handle.
Try to call paypal and tell them your situation. If you don't do anything wrong, then they shall unlock your account. Yes you can go with other payment gateway but unfortunately, paypal is still the leading one.
The only people who have done what you have said, are people who are deliberately trying to commit fraud. I still dont understand why you would ask your friend to send to your parents, rather then asking him to press refund (and or withdrawing and sending via a bank) but i guess what is done is done. I have heard from others that all funds will be returned after 6 months, but I have no personal experience with this, and it may vary country to country.
He was trying to hide money from PayPal during a dispute so as not to have to pay what he might owe. Of course they flagged his account as one likely to commit fraud. If someone files a dispute against you, and you move assets around to avoid paying that is akin, if not outright fraud.