The thing that bothers me is that a company would consider itself the enforcer of The Law. While it is incumbent on any company to obey said Law, it's the government's job to enforce it.

So, rather than shut down an account, since PayPal doesn't necessarily have the details, they should just bundle up what they think is the incriminating evidence, toss it over the wall to the US Attorney and ask "This legal, bro?" If yes, done. If not, then the government can toss it back over the wall and say "Shut it down, dawg."

We might have better-considered laws if the government actually had to deal with half the consequences of passing said laws.