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I know of quite a few porn pirates using Paypal on their pages but I do not know how to report it to Paypal, they deal with millions of customers and I don't think Paypal is going to notice it unless someone reports them. Some pirates go the extra length to avoid direct links.
I think that having someone's Paypal account cancelled is one of the best ways to kick the pirates on their balls as it is essential to have a Paypal account to make online business, the only abuse Paypal email address I have found was to report phishing, if anyone knows a reliable way on how to report Paypal being used for porn please post it here.
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