this post was submitted on 26 Aug 2025
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As much as I believe PayPal would do this (they have closed accounts without warning and stolen all pending funds many times in the past, which is why it's commonly recommended to avoid them if you're making decent money), the only source for this article is a Reddit thread that doesn't name the game or company.
There's a decent chance this is just someone's creative writing exercise using the current scandal to get attention.
It is probably real, since PayPal clearly states that you need pre-approval to accept payments from mature content.
https://www.paypal.com/us/legalhub/paypal/acceptableuse-full