(Unknowingly)Bought stolen digital items, PayPal refuses to help me.

I bought stolen goods that I didn’t know were stolen from someone who told me to send him personal payments. Normally I don’t send personal payments when I’m buying things but he had good feedback so I unfortunately did(I’ve sent him $234, being the idiot I am).  He sold a lot of these goods so a lot of people opened disputes and he told me his paypal account was closed because of this and the money in his account was taken. The problem with that is he also had my money in his account that now I have no way of getting back since paypal has itIs PayPal legally allowed to keep my money? Or it stopped being mine when I sent it to the scammer? Are they going to issue refunds to the people who have buyer’s protection and keep the rest of the money for themselves? I’ve been with paypal for 5 years, but if they end up taking my money, I’m most likely closing my account.

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