Major Australian Bank CEO Apologises After Freezing Customer Funds Over Bitcoin Transfer

On Wednesday, Westpac CEO Anthony Miller apologised to a customer after the bank blocked a $30,000 transfer to Australian crypto exchange CoinSpot and froze their accounts.

The customer, known only as Tim, had deposited $50,000 into his Westpac account earlier this month and attempted to move a portion of the funds to CoinSpot to invest in Bitcoin. 

The transaction was halted, triggering a call from Westpac’s risk management team. 

Tim recorded the conversation and played it on Sydney’s 2GB radio earlier this month, where the staff member repeatedly challenged him on the purpose of the transfer, suggesting his answers lacked clarity.

“I am genuinely trying my best to help you out as best as possible,” the staff member said in the recording. “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.”

Westpac is one of Australia’s “Big Four” banks, a group that dominates the country’s banking sector and holds significant influence over retail and commercial finance.

Following the call, Tim’s accounts were frozen for several days, leaving him unable to access funds. He claims the delay caused him to miss out on gains from a rise in Bitcoin’s price.

The incident comes as the Australian government moves to address debanking concerns for individuals, alongside new crypto licensing reforms aimed at improving transparency and reducing the likelihood of banks cutting off services to digital asset platforms.

Call snafu

In a separate incident, a Westpac executive mistakenly left Tim a voicemail intended for a colleague, commending the staff member’s handling of the situation despite the controversy.

Miller addressed the incident on air with 2GB on Wednesday, apologising to Tim while acknowledging that the bank mishandled the case.

The CEO defended Westpac’s broader anti-scam measures, noting that one in five attempted crypto transfers flagged by the bank in the past month were linked to fraud. 

However, he conceded that Westpac needed to improve how it communicates and handles such interactions.

Tim has since closed his Westpac account and moved to a different bank. Westpac did not immediately respond to a request for comment.