Quote Originally Posted by Drowned
We still only have to provide our photo ID and proof of address documents even though the charge back made by someone who exchange money with us or that someone we exchange with uses fraudulent money? We don't have to explain anything? Because we are not allowed to exchange PayPal money to other e-currencies, so how can we explain the situation?
Exactly the point the officials want to know whether you have broken any of the TOS or not that is why they put a hold on the payment and ask for explanation.
And when it comes to sending our documents a charge back is made when the account from which the money came might be a fraudulent or there might be a transaction without the other party awareness, in both the cases paypal wants to make sure it was you who were willing to take the risk or was it someone else.