As I mentioned to Cliffton, you need to mention to Paypal (call them and ask for "resolutions" directly) that they are selling an illegal electronic currency which you have learned is against Paypal's TOS. Tell them that you didn't realize that it was against TOS at the time, and that when you bought it, they stopped communicating with you. Post their website, screen shots, receipt etc into the proof section. Within a week, their paypal accounts will be locked down.

Problem solved.