Last week, PayPal blocked the account used by WikiLeaks stating:
"PayPal has permanently restricted the account used by WikiLeaks due to a violation of the PayPal Acceptable Use Policy, which states that our payment service cannot be used for any activities that encourage, promote, facilitate or instruct others to engage in illegal activity. We've notified the account holder of this action."
In an interview, at LeWeb, PayPal's VP Osama Bedier was asked about why PayPal blocked WikiLeaks payments and froze its account. To this, Bedier said:
"PayPal's decision was influenced by the fact that the State Department deemed WikiLeaks illegal in a letter dated November 27th."
Here's the full letter: