Major Australian Bank CEO Issues Apology After Freezing Accounts Over Bitcoin Transfer

On Wednesday, Westpac CEO Anthony Miller publicly apologized to a customer, referred to as Tim, after the bank blocked a $30,000 transfer to the Australian cryptocurrency exchange CoinSpot and temporarily froze his accounts.

Earlier this month, Tim deposited $50,000 into his Westpac account and attempted to transfer a portion to CoinSpot to purchase Bitcoin. The transaction was flagged, prompting a call from Westpac’s risk management team. During the conversation, which Tim recorded and later shared on Sydney’s 2GB radio, a bank representative questioned the purpose of the transfer, suggesting Tim’s responses were evasive. “I’m trying to assist you as best I can,” the staff member said, “but it feels like you’re avoiding clear answers to push this through quickly.”

Westpac, one of Australia’s dominant “Big Four” banks, holds significant sway in the country’s financial sector. Following the call, Tim’s accounts were frozen for several days, preventing access to his funds. He claims the delay caused him to miss out on potential Bitcoin price gains.

The incident coincides with Australia’s broader efforts to tackle debanking issues and introduce new cryptocurrency regulations aimed at enhancing transparency and reducing service disruptions for digital asset platforms. The government, led by Prime Minister Anthony Albanese, recently unveiled reforms requiring major crypto exchanges to secure an Australian Financial Services Licence, while exempting smaller firms not offering financial services.

In an unrelated mix-up, a Westpac executive accidentally left Tim a voicemail meant for a colleague, praising the staff member’s handling of the situation despite the public backlash.

During a 2GB radio appearance, Miller acknowledged the bank’s mishandling of Tim’s case and issued an apology. He defended Westpac’s anti-fraud measures, stating that 20% of flagged crypto transfers last month were linked to scams, but admitted the bank needs to improve its communication and processes.

Tim has since closed his Westpac account and switched to another bank.