I have a blocked Paypal account because I registered then from an IP which is not Paypal compliant. Now that I moved to another country, I was able to acquire a new and a verified account. Can I still redeem my earlier account? I still have funds there. Sorry if a similar question is already brought out here.
Write to Paypal and explain the situation. You may be able to recover your original account. Do not set up the new account as yet.
Duplicated accounts can result in a major problem if you opted for getting another premium. Paypal usually ask your for identity documents that you must fax to get back your previous account and funds available on it.
Is the blocked account a personal account ? If it is not then probably you be in violation of their TOS. In any case, write to Paypal and see what they have to say.
Why was the Paypal account blocked? If it was blocked because you were in a country that was not supported, you might be able to retrieve your money. If it was blocked because of something else - I would leave well enough alone