99.7% hoax?
I read every agreement in the full before I signed them, and read all of the updates. It doesn't say any thing of the sort that this "ex-employee" is claiming.
Besides... I have sent money with paypal to people I considered "shady" selelrs on e-bay several times and have yet to have my account "siezed" or see their accounts "siezed".
I don't think this siezure problem logically probable at this point.
Though it is completely possible for scammers to abuse PayPal, I have yet to be scammed by a user on there.
It looks like many of these people are blaming PayPal for getting scammed by some shady characters. Oh well... :-p