I really don't see how that is legal... Your money may be in binary format but it still has value and you can't just say "derp, you never got the product you were promised but the time frame has been too long, sorry!" It's literally lying. Now I completely get its not PP/the bank's fault, but they have a record of you sending X dollars to Jackass McGee and you have literally nothing to show for it. If nothing else they should be able to contact his bank/PP and attempt to get the money back.
I suppose your best bet is to get into contact with someone already pressing charges and see if you can piggy-back onto that. Just because you're not in the US doesn't mean you should be ....ed over, that's absolute bullshit. Keep us informed of how its going, because like I said, I almost guarantee you aren't alone
While I agree in principal, there is a statute of limitations on these things as well. Now I don't know how long that time is, whether or not it would be based on the laws from where Jim operates or the OP lives, or if it would be some combination of the OP's resident laws as interpreted through American jurisprudence, so it's still worth researching. The fact is though, there is a time limit in order for the OP to file suit.