Ok, I just got back from Best Buy and converted the remaining $850 of gift cards that I had onto new gift cards. The lady at the store told me they already had 2 different people come in today and try to use a gift card purchased through Paypal Digital Gifts and find out that their balance was $0.
I called Best buy corporate office regarding the 2 $100 gift cards which now have a balance of $0. They were purchased through paypal digital gift on ebay on August 3 and were used in a Best Buy store in California on 9/4/16 (2 days ago). I live in New Jersey.
So what we see is:
1) The gift cards are being used RIGHT NOW by the thieves (mine were used only 2 days ago.) If your gift card has a balance on it, go to the store and have it converted ASAP or use it up ASAP.
2) Paypal knew about the hack the last week of August (they took their store down for a week, which we now know had to be because of the hack). They chose not to tell anyone about it. Had they informed me about it when they knew, I could have used the gift card before the crooks did.
I am going to wait a day or 2 more and see if there is any response from paypal/ebay in the news, otherwise I will have to contact paypal. I don't know how that will play out, as my purchase is more than 30 days old so I can't file a complaint with ebay, and the purchase was made with ebay gift cards so I can't file a complaint with a credit card company.
I am thinking of contacting the lawyer who handled the original class action suit against paypal the first time and seeing what they have to say about this.