I stand to be corrected, but to the best of my knowledge, paypal does not allow online currency exchanges.
In fact, one of my friend's paypal account got frozen for 6 months for doing a similar transaction to yours.
Perhaps that is the reason why you didn't get your money back?
In any case, I think your thread title is rather misleading. It's the counterparty to the transaction who scammed you, not paypal. |