The main reason for Hotfile to gain customers is their use of Paypal.
Currently Paypal is not trying to intervene, as they also earn money from the fraudulent activities, they have been informed.
Still, I encourage anyone and everyone who has been deceived by Hotfile, and bought their accounts from Paypal, to make an official claim at Paypal.
Hotfile is suspending accounts that do not bring them any money. For instance, they may decide to suspend your account if you download more than 30GBs within a day. Yes, that is a fact. Don't believe in the garbage they say about unlimited downloads. You can download until they check how much you downloaded, and they decide to immediately cancel your account.
Secondly, Hotfile logs your every activity, your IP addresses, your personal information, and they share those information with third parties regularly.
You heard it correctly!
Hotfile keeps a detailed log of every member ever since the beginning of your membership (showing all the information related to the files you have downloaded and uploaded, the IP addresses you have used, etc.) and regularly share them with third-parties. And be informed that Hotfile never deletes the log file they keep for their members and also for people who access their file. Compared to the amount of files stored on their servers, such amount of information is nothing to them.
As you may know more than 99% of the files stored in Hotfile are illegal content, regardless of where you live. Know that, if it comes to the worse for them, to save their own asses, Hotfile.com is surely give all of your information to the requesting parties.
In short, Hotfile does not follow a specific policy to suspend the accounts. They just suspend. As a result they sit on the money without providing any kind of service in return. That is one way they are using extensively, to make money.
In any case, open a dispute, file a complaint at Paypal. Or if you paid with your credit card, do the same with them. If, for Paypal, despite receiving many claims, it does not do anything to stop Hotfile.com's fraudulent activities, they will be the responsible party in the court. And they will be the ones facing trouble of being a part of Hotfile.com's fraudulent activities. So, do not hesitate to make a claim.
If Paypal decides to take the correct action here, they will put significant restriction on Hotfile, and they may revise their policy to refund the customers for Hotfile's fraudulent activities.
Secondly, contact with IC3, Internet Crime Center. File a complaint with them.
IC3 works with legal authorities, Police and FBI, and even if they cannot directly do anything about Hotfile, if they are performing their illegal activities abroad, they can limit the server access to them in USA, and prevent their access to monetary resources within USA.
Thirdly, if you do not want to lose your money to Hotfile, d on ot support them by downloading their files. You can always use another service, especially ones that at least try to follow the laws as much as they can, unlike Hotfile who escapes the laws and cannot even provide a valid phone number or a valid email address to contact.