Westpac CEO Issues Apology After Controversial Bitcoin Transfer Blockade

On Wednesday, Westpac CEO Anthony Miller publicly apologized to a customer after the bank blocked a $30,000 transfer to the Australian crypto exchange CoinSpot and subsequently froze the customer's accounts.

The customer, known only as Tim, had deposited $50,000 into his Westpac account earlier in the month. He attempted to transfer a portion of these funds to CoinSpot for investing in Bitcoin. However, the transaction was halted, prompting a call from Westpac’s risk management team.

During this conversation, which Tim recorded and later shared on Sydney’s 2GB radio, the staff member repeatedly questioned him about the purpose of the transfer, suggesting that his answers were unclear. The recording revealed a level of skepticism from the bank towards the customer's intentions.

“I am genuinely trying my best to help you out as best as possible,” the staff member stated. “But I feel as though, so far, you are trying to tiptoe around the answers.” Following this call, Tim’s accounts were frozen for several days, preventing him from accessing his funds. He claims that this delay resulted in missed opportunities due to a rise in Bitcoin prices.

This incident occurs amid the Australian government's efforts to tackle debanking concerns for individuals and to introduce new crypto licensing reforms aimed at enhancing transparency and reducing the risk of banks withdrawing services from digital asset platforms.

In a related incident, a Westpac executive mistakenly left Tim a voicemail meant for a colleague, praising the staff member's handling of the situation despite the ongoing controversy. Miller later addressed the situation on air with 2GB, apologizing to Tim and acknowledging that the bank mishandled the case. He defended Westpac’s anti-scam measures, noting that one in five attempted crypto transfers flagged by the bank in the past month were linked to fraud. Nevertheless, he admitted that Westpac needs to improve its communication and handling of such interactions.

Tim has since decided to close his Westpac account and move to a different bank. As of now, Westpac has not responded to requests for further comments.