Paypal Freezes Steam Developer'S Funds Over Adult Content on OnlyLikeFans

PayPal Clamps Down on UK Steam Developer Funds

A UK-based programmer on Steam is grappling with a significant financial freeze after PayPal seized approximately £80,000. The funds were withheld due to alleged violations of PayPal's terms of service, specifically linked to the developer's work on adult-themed games, as reported by Game*Spark.

Last month, several Steam users faced disruptions when PayPal suspended payments in certain currencies. Valve, the company behind Steam, revealed that PayPal's banking partner decided in July 2025 to stop processing transactions associated with Steam in select currencies. The underlying reasons for this decision remain undisclosed, but many users speculate it's part of a broader crackdown on adult content across online platforms, with Steam being notably affected.

Legal Battle and Community Support

Unable to access their earnings, the programmer took to Reddit seeking legal advice and community support. They voiced their frustration, stating that their game's development adhered to UK laws and its sales did not involve PayPal transactions. Nonetheless, PayPal justified the freeze by citing a breach of their terms.

“It’s perplexing that all my revenue, completely unrelated to PayPal transactions, has been seized. This feels more like a suppression of adult content in digital games,” shared the developer on Reddit.

PayPal’s Acceptable Use Policy prohibits transactions involving "certain sexually oriented materials or services." While certain physical goods may be allowed in the U.S., digital goods worldwide face restrictions. The company reserves the right to make discretionary decisions on what constitutes such content.

Recurring Challenges with Payment Processors

This isn’t the first time the programmer has dealt with such issues. On Reddit, they disclosed previous incidents of business closures due to their content, having been turned away by major banks and alternative services like Wise and Revolut. The choice to use PayPal was a strategic move to avoid banking disruptions, yet the current freeze has left them seeking new financial avenues.

As the programmer navigates these hurdles, the broader conversation around digital platforms and adult content continues. This incident highlights ongoing tensions between content creators and payment processors in the evolving digital economy.