Westpac Apologizes After Blocking $30,000 Bitcoin Transfer

In a recent incident that underscores the friction between traditional banking and cryptocurrency investments, Westpac CEO Anthony Miller 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 an Australian crypto exchange to purchase Bitcoin. This transaction triggered an intervention from Westpac’s risk management team, who questioned Tim about the purpose of his transfer.

Tim recorded the conversation with bank staff, which was later played on a radio station. In the recording, a Westpac employee repeatedly challenged Tim’s answers about the transfer purpose, suggesting he was being evasive. “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, causing 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 the radio station. 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.”

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 the radio station, 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, noting that one in five attempted crypto transfers flagged by the bank in the past month were linked to fraud.

Westpac is one of the major banks in the country, which hold significant influence over the retail and commercial finance sectors. After regaining access to his accounts, Tim withdrew all his money and moved to another bank. The incident comes as the government works to address debanking concerns for individuals and businesses in the crypto sector. The 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.