Originally Posted by After Shock Media

Despite what they dished out to the press they did not kill off adult for fraud. They killed off adult transactions due to content, primarily legal but highly controversial underage non nude sites and the fact that ebay did not wish to be tied to them.

During the paypal buyout and shortly after paypal came running to adult with open arms. News shows like dateline, 20/20, 60 minutes, and assorted day time talk shows were running rampant with these under aged "adult" sites and on nearly every single fucking one of them was big ass paypal logo's. Ebay wanted no part of that type of publicity at all.

Ebay had been dealing with adult since they first opened up shop. They latter hid the living hell out of it as well, mostly to not catch a ration of shit from the public - yet never killed it.

They could not censor legal content while allowing other legal content so they axed it all, end of story. Both paypal and ebay both knew the level of fraud in adult at the time and they also both knew that online auctions had a much higher fraud percentage, charge back percentages, and such. (and still does).

Yet I guess it is better just to automatically believe what one reads, specially on the internet.