Based on what we're seeing, Paypal's previous history aside, it sounds rather like Paypal got served a National Security Letter telling them to dump MEGA.
It's the result of a US DoJ operation called "Operation Chokepoint" http://en.wikipedia.org/wiki/O... which does an end-run around Constitutional limits on government power and the protections afforded by it to the people by putting pressure (Gee, we'd hate to have to come in and audit you to hell and back every 30 days for the next 10 years) on banks and other financial institutions and companies to stop doing business with those people & businesses the US government dislikes and/or finds inconvenient.
The US has become a 'Banana Republic', "democratic" and "representative" in name only, where corruption, greed, and lust for power pervades the entire system. The law no longer matters, it's who you know that matters.
All it will take is the right trigger for the US to go full fascist oligarchy.
Hey, I know! Let's put the government in charge of more stuff and give it more money and power! Problem solved!