If it is proven that the other account was hacked, you might file a Paypal claim under Seller Protection. If your transaction meets the appropriate criteria for coverage, you will simply have to argue with Paypal and wait for your money to be returned.
Otherwise, you could file a complaint with the police. The won't investigate very far. But if they find the perpetrator, you can then sue in court or wait for the criminal case to finish. The judge in a criminal case might require the criminal to pay restitution. You will then have to hope the crook simply pays you. If not, you submit the judges orders to a collection agency. A collection agency may take years to recover the funds for you. If they succeed, they will keep half the money as their fee.
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