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When someone owes someone else a sum of money and they are NOT paying it back, they don't even intend to give it back to the lender, it is kind of suppressing, right? But I don't feel it is natural to say:

He suppressed my money.

I don't know why it sounds a little weird to me, maybe because you suppress someone's right, as I've read but do we suppress someone's property too, e.g. money?

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It's not "suppressing", that doesn't fit any of the dictionary definitions.

"Withhold" is possible: "He withheld my money". It means "refuse to give (back) something that that is due or expected." Or simply "He didn't pay his debt."

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