Create virtual bank and withdraw money to it.
Just exchange to cryptocurrency. If you are dealing with black / gray markets, you can optionally tumble the cryptocurrency and then exchange it for giftcards, cash or whatever or just keep it.
I know people selling virtual bank accounts with virtual debit cards meaning you can withdrawn the money to the bank and spend it how you'd like with the VCC. The only issue is I'm pretty sure they open the accounts with stolen identities but who knows.
How about transferring the funds to your real paypal account and withdrawing money as usual?