TLDR
Table of Contents
- Westpac CEO Anthony Miller apologized after the bank froze a customer’s accounts following a $30,000 Bitcoin transfer attempt
- The customer, known as Tim, recorded a call where bank staff challenged his transfer intentions
- Tim was locked out of his accounts for nearly a week, claiming he missed Bitcoin price gains
- The incident occurs as Australia develops new crypto regulations and addresses debanking concerns
- Tim has since closed his Westpac account and moved to another bank
In a case highlighting tensions between traditional banking and cryptocurrency investments, Westpac CEO Anthony Miller has issued a public apology after the bank blocked a customer’s $30,000 Bitcoin transfer and froze their accounts for nearly a week.
The customer, identified only as Tim, had deposited $50,000 into his Westpac account and attempted to transfer a portion to Australian crypto exchange CoinSpot to purchase Bitcoin. The transaction triggered intervention from Westpac’s risk management team, who questioned Tim about the purpose of his transfer.
Tim recorded the conversation with bank staff, later playing it on Sydney’s 2GB radio. In the recording, a Westpac employee repeatedly challenged Tim’s answers about the transfer purpose, suggesting he was being evasive.
Customer Left Without Access to Funds
“I am genuinely trying my best to help you out as best as possible,” the staff member said during the call.
“But I feel as though, so far, you are trying to tiptoe around the answers and simply tell me what you think I want to hear to have this pushed through as soon as possible.”
Following the phone call, Tim’s accounts were frozen for several days. He claims the delay caused him to miss potential gains from a rise in Bitcoin’s price during that period.
Tim, who had been a Westpac customer since he was 12, expressed frustration about being denied access to his own money.
“He just had no intention of pushing it through, and just no intention of letting me have the freedom to use my own after-tax dollars,” Tim told 2GB Radio.
During the recorded call, the Westpac employee told Tim:
“It’s because you are using our banking platform. You’ve agreed to our terms and conditions… We’re not going to be able to facilitate this payment if you’re not forthcoming and honest.”
Bank Defends Anti-Scam Measures
In a separate incident that compounded the situation, a Westpac executive mistakenly left Tim a voicemail intended for a colleague, praising the staff member’s handling of the case despite the growing controversy.
When addressing the incident on 2GB Radio, CEO Anthony Miller acknowledged that the bank had mishandled the situation.
“We apologize to Tim and I’m apologizing now to Tim that it didn’t quite work as we wanted,” Miller said.
While apologizing for this specific case, Miller defended Westpac’s broader anti-scam measures. He noted that one in five attempted crypto transfers flagged by the bank in the past month were linked to fraud.
A Westpac spokesperson told Yahoo Finance that while they couldn’t comment on individual cases, stopping scams is one of their “biggest priorities” and they try to watch for red flags when customers request large cash withdrawals.
Westpac is one of Australia’s “Big Four” banks, which hold major influence over the country’s retail and commercial finance sectors.
After regaining access to his accounts, Tim withdrew all his money and moved to another bank.
Regulatory Changes Underway
The incident comes as the Australian government works to address debanking concerns for individuals and businesses in the crypto sector.
The Albanese government has outlined a new regulatory framework for digital assets aimed at providing greater certainty for industry participants while addressing consumer protection and market integrity risks.
These reforms will require major crypto platforms to obtain an Australian Financial Services License while exempting smaller firms and businesses not involved in financial services.
In a separate but related development, Melbourne-based blockchain firm ShareRing has been selected as the first digital identity provider to test technology for the Australian government’s verification trials, which were approved last year to enforce social media restrictions for underage users.
The ShareRing pilot program will work with school students in Darwin, testing a self-sovereign identity platform that allows users to verify their age while maintaining control of their personal data.
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