I have an open dispute with a buyer on paypal. This has not been done through eBay, so apparently no protection is present. I sold an intangible, virtual good (a game account) through a website which uses PayPal as its payment gateway.

The money went into my account, and I gave the details for the account to my buyer. A couple of days later the buyer complained to me that the account was "locked" and then he got the account banned shortly later. Don't worry, I have confirmed through investigation that it was his actions that caused this, as the account had been in my possession for a while.

Basically, what I want to know is, can paypal take money back through the following "laundering"

My PayPal account > Another PayPal account > Bank Account. The money was originally in USD in my account, and then i converted it to GBP. PayPal "froze" the USD so I was still able to move my GBP over to the other account and then into the bank.

The buyer escalated the dispute, and now paypal will look at it unless I can provide proof of refund or posting before 23/12.

Am I safe? Or will I have to refund an American that robbed me?