And not just the Daily Sceptic - the Free Speech Union and Toby Young himself have been adjudged too free with their speech - or something; the reasoning behind this is about as clear as mud, so it's pretty obvious that it doesn't stand up.
In this case it is Paypal that is reportedly acting as judge jury and executioner, no appeal possible.
So if you had a regular donation to either the Daily Sceptic or the Free Speech Union, you will have received an email from Toby directly - if you haven't had the email then you are not affected.
Under Law it should be open to Toby to sue Paypal for restitution and damages. It would be for Paypal to demonstrate that their terms and conditions had indeed been broken. Under our official legal system this is inordinately expensive, but in a Common Law Court it should be feasible, and simple enough, although enforcing judgement would be the problem.