Yes. However, the reason of why you moved offshore, could affect your pp account. To be exact: Since demonoid was BT tracker it was impossible for it to utilize pp donations directly, so they set up another site, which resulted in having a donations made to second site also valid as donation made to demonoid directly. My English sux, but I hope you understand my point.
There is no obvious way to do it. But the easiest way is to separate payment paths from your services. The above example with Demonoid is actually working one. Another thing that you have to take into account is to use offshore infrastructure to which your government has no access.
Lets say for the sake of the argument that you build illegal music site in your country, and that your country is UK. First, you would need to put some distance between you and content, so you would need to get offshore hosting, for example in China and VPN account for your second indentity. Next, you need to earn money somehow. For that, the best thing to do is to create another separate identity, for which you will make a payp account. Of course, in accessing this pp account you would need to use above mentioned VPN. When everything is completed, put something like Demonoid did (donations to different site which were valid for illegal site as well) or just sell ads from companies which accept your kind of sites. Next step is to use pp money and send it to yourself via RentACoder, or buy stuff from yourself.
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