Not true at all.Yes, he did say that - but the reason he made the post was because he was under 18 and was looking for another solution. He has lied about his age, meaning he has a different identity to the one he has given paypal - if someone wanted to avoid tax, they could sure as hell do that by creating multiple paypal accounts under different names/ages. That is why it can be seen as fraud/money laundering.
PP does not ask for your age when you register, but you do have to agree to the ToS (which says you must be 18).
There isn't actually any profile field for 'age' in PayPal either, they don't keep record of it.
So all his info could be correct it could be that he's just under 18.
Also there is a huge difference between fraud, money laundering, and tax evasion.
What you've described is tax evasion, not fraud nor money laundering.
