On the contrary, NOT freezing them would be totally boneheaded. OP describes an EXTREMELY sketchy way of collecting money (take money from one random person on

On the contrary, NOT freezing them would be totally boneheaded. OP describes an EXTREMELY sketchy way of collecting money (take money from one random person on the internet, promise you they are sending a "mystery" gift to some other person on the internet) that clearly violates PayPal's TOS (you can only ship to billing addresses on paypal). There is not a payment processor in the world that wouldn't freeze someone under these conditions.