TLDR:
- Westpac CEO Anthony Miller apologized after customer Tim was denied withdrawing $50,000 for Bitcoin investment
- Tim’s accounts were frozen for nearly a week following the attempted withdrawal
- Customer claims he missed out on $6,500 in Bitcoin gains due to the delay
- Incident occurred amid increasing bank scrutiny of large cash withdrawals for crypto
- Australian banks are implementing measures to prevent scams, with nearly half of investment scam losses involving cryptocurrencies
Tim, a long-time Westpac customer, found himself locked in a frustrating battle with one of Australia’s “Big Four” banks after attempting to withdraw $50,000 to invest in cryptocurrency.
The incident led to a public apology from Westpac CEO Anthony Miller, highlighting growing tensions between traditional banking and the crypto world.
The customer, who had been with Westpac since he was 12 years old, tried to transfer $30,000 to Australian crypto exchange CoinSpot to invest in Bitcoin. This transaction triggered an intervention from the bank’s risk management team.
What followed was a tense phone call, which Tim recorded and later shared with Sydney’s 2GB radio. During the conversation, a Westpac employee questioned the purpose of the transaction, suggesting Tim wasn’t being forthcoming about his intentions.
“It’s because you are using our banking platform,” the Westpac worker explained. “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.”
Tim became increasingly frustrated throughout the call. “You’ve got my money. I’d love my money back,” he told the bank representative.
Banking Security vs. Customer Freedom
The bank employee remained unmoved by Tim’s requests. “I’m genuinely trying my best to help you out as best as possible, but I feel as though, so far, you are trying to tiptoe around the answers and just simply tell me what you think I want to hear,” the staff member said.
Following the unsuccessful call, Westpac locked Tim out of his accounts for nearly a week. Once he regained access, he withdrew all his money and switched to another bank.
Tim claims the delay was costly. He missed a Bitcoin price surge that would have earned him around $6,500 in profits had he been able to make his investment when originally planned.
In an incident that compounded the situation, a Westpac executive accidentally left Tim a voicemail that was meant for a colleague. In the message, the executive praised the staff member’s handling of the situation despite the controversy.
CEO’s Response to the Incident
Westpac CEO Anthony Miller addressed the incident directly during an interview with 2GB Radio. “We apologise to Tim and I’m apologising now to Tim that it didn’t quite work as we wanted,” Miller said.
Miller explained that the bank is constantly working to protect customers from scams.
“We’ve got a real priority to make sure our customers understand it’s a really dangerous, murky area to participate in and so we’re trying to do the right thing by the customers,” he stated.
The CEO acknowledged that improvements were needed in how the bank handles such situations. “We can certainly improve our delivery on that one and there’s no doubt that we’ll look at more coaching,” Miller admitted.
“We also need to be more sensitive to customers, it’s their money, we completely understand,” he added.
Miller revealed that one in five attempted crypto transfers flagged by the bank in the past month were linked to fraud. This statistic helps explain the heightened scrutiny, even if the approach in Tim’s case was flawed.
Banks across Australia have implemented similar measures to combat fraud. These procedures have proven controversial, with many customers feeling they’re being interrogated about their own money.
A Yahoo Finance poll of more than 7,700 readers found that 77 percent believe banks have no right to question customers about their money.
The Australian Federal Police (AFP) reported that more than $382 million had been lost to investment scams in the 12 months to August last year. Nearly half of these losses—approximately $180 million—involved cryptocurrencies.
This incident comes as the Australian government works to address “debanking” concerns for individuals. New crypto licensing reforms are being developed to improve transparency and reduce the likelihood of banks cutting off services to digital asset platforms.
The Australian government, under Prime Minister Anthony Albanese, has outlined a new regulatory framework for digital assets. These reforms will require major crypto platforms to obtain an Australian Financial Services Licence while exempting smaller-scale firms and businesses not involved in financial services.
For Tim, the experience has led to a complete break with Westpac. After regaining access to his funds, he closed his account and moved to a different bank.
