Skullgirl Studio LabZero hit with PayPal Freeze Out

Skullgirls Thanks for EverythingAfter a hugely successful crowdfunding campaign on Indiegogo, Skullgirl creator LabZero was hit with an unexpected turn of events.  PayPal terrified of the possibility of chargebacks had frozen the account fearing the financial risk. Originally this series of events were reported on EventHubs which picked up on the strife on NeoGAF.

It appears the concern is with backers being miffed if their character does not make the cut.  As part of the crowdfunding strategy on Indiegogo, higher levels of funding released new characters.  Comments on the Indiegogo forum for the crowdfunding project shared confusion and disappointment.

For a period of time, it appears that PayPal had been treating the money held as loan.

Reports in VentureBeat indicate the freeze had been lifted with $35,000 held as “collateral”.

The Skullgirls crowdfunding campaign raised over $800,000 on an initial goal of $150,000 and is one of the most successful game crowfunding efforts to date.  Over 15,000 supporters backed the project.

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