Crypto-exchange owner seeks $290,000 from banks over account freezes

Trader Allan Flynn is seeking $290,000 in damages from Westpac and ANZ in court. Banks’ reluctance to work with cryptocurrency crippled the Australian’s exchange business, according to Financial Review.

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The exchange owner called the banks’ closure of the accounts with Westpac and ANZ ‘illegal’ due to ‘a lack of prior notice and justification’.

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Banks also refused to open new accounts for the crypto exchange on various pretexts. Flynn said he sustained ‘significant losses’, for which he seeks compensation of A$375,000.

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Flynn owns a cryptocurrency exchange with about 450 clients. The platform operates under regulation and was previously registered with AUSTRAC.

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Cryptocurrencies and crypto-based businesses are legal in Australia. However the exchange owner noted that he is not the only victim of discrimination against crypto traders on the mainland.

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A hearing on Flynn’s case in the ACT Civil and Administrative Tribunal is scheduled for the end of March, according to the Financial Review.

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In August 2020, popular Australian exchanges refused to list Monero and other anonymous cryptocurrencies to deter potential illicit activity on their platforms.

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