I have seen that. I agree too many potential for scam. What I would like to do is send fiat to PayPal from an exchange. Say I sell my BTC and turn it into fiat. Then send that to PayPal. I know CoinBase offers this, but it's limited with the amount I can send at one time.
Why don't you sell your BTC directly to Paypal by trading it to trusted member on Currency Exchange??
The total fee to turn BTC>Fiat>Paypal will be a little higher than converting BTCs directly to Paypal.
Have you tried Gdax?
It's an exchange from Coinbase, it has higher limit, you should be able to turn BTCs to Fiat that way.