PayPal refuses to release full funds to indie game developer despite legitimate crowdsourcing

Following a strings of e-mails and tweets from gamers, PayPal has finally released the funds to the indie developer. According to PayPal:

We have reached out to Nyu Media and the issue has been resolved. We want to reiterate that supporting these campaigns is an exciting new part of our business. We are working closely with industry-leaders like IndieGoGo and adapting our processes and policies to better serve the innovative companies that are relying on PayPal and crowd funding campaigns to grow their businesses.

Ex SNK / King of Fighters devs managed to raise over $118,000 through Indiegogo . However, Paypal has blocked half of the funds saying that the fuds will be released once the game is complete. According to devs:

What’s more, they provide no option to discuss, stating we should ‘contact us closer to the release date beginning of next year’ to arrange release of the funds. “We appreciate irony as much as the next person, but PayPal refusing to provide funds legitimately raised to complete a game until after the game is released isn’t just beyond ridiculous – it potentially derails the game development.

What do you think of Paypal blocking the funds? Let us know in the comments.