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That's just not true and conspiracy nonsense.

Maybe not that specific example, but it's very true generally. You can get your account blocked for specific words in your Venmo payments:

https://www.inc.com/tess-townsend/venmo-reportedly-blocking-...

https://angelinatravels.boardingarea.com/2017/05/04/careful-...

I tested one of these and had to send Venmo customer support an email explaining I was not a terrorist.

which once again has nothing to do with the government and everything to do with Venmo incorporated (Paypal Inc.) choosing to operate that way out of fear of the government

Current finance laws are such that if PayPal stopped having this kind of fear of the government it would likely go under. It's just a loophole to get around the 4th amendment.

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