The PayPal explanation doesn't obviously make any sense, Digital River is one of the largest ecommerce provider in the world, it's normal they would have many frauds, not because Digital River itslef it's a "scam" (which is absurd, they are a big company, traded on Nasdaq since years), but because being so big, the chance some develoepers selling questionable stuff might use it is high.
So no, the real reason why PayPal says so is:
- Digital River it's a competitor in the payment space, so they would say anything against them.
AND
- PayPal would never publicity admit they use silly automatic filters to detect what the call "sensible content", like the absurd block of many orders for Houston, just because the product USED to be called "Houston George Bush", so it sometimes it's being caught in one of the their bugged filters, and their only suggestions was to change the product name, which didn't fix this entirely, but the suggestion itself was an admission of the very existence of such filters.
Of course, it's very easy to not run into this problem and it's simply not to use PayPal.
Simmarket had issues with PayPal:
https://www.avsim.com/forums/topic/552620-simmarket-dropping-paypal/OrbX had issues with PayPal:
https://orbxsystems.com/forum/topic/127178-paypal-restriction-the-reason-whySo, it's clear the problem here is NOT Digital River, but it's PayPal.