- CommBank froze Andrew Broadbent’s AU$30K Bitcoin investment through crypto broker Stormrake, flagging the transaction as a scam despite his 35 years of financial experience.
- The bank forced Broadbent to sell at a AU$3,000 loss to prove the investment was legitimate, later apologising and reimbursing just AU$476.67 as part of its broader anti-fraud clampdown.
- CBA defended its actions, citing its AU$10K monthly crypto cap and claiming a 70% drop in scam losses since implementing stricter controls on digital asset transfers.
Andrew Broadbent, a Melbourne accountant, tried to invest AU$30,000 in Bitcoin last August through crypto brokerage Stormrake.
But the Commonwealth Bank (CBA) decided to shut it down and freeze the funds. Truly a classic Australian moment.
According to a report from Financial Review, the transfer was blocked, all of his accounts were frozen, and the transaction was flagged as a potential scam.
Quite ironic for Broadbent, who has 35 years of experience in compliance and accounting. But it seems this was a red flag of a different kind.
Read also: Bitcoin Behaving Differently Than in Past Bull Runs, Bitwise Analyst Says
Too Many Transfers!
CBA’s decision was just part of a broader crackdown by Australian banks targeting crypto-related fraud. Good to remember CBA has dug into the crypto ecosystem before by exploring Web3 initiatives since last year.
However, the crypto sector drew scrutiny after data suggested digital asset platforms are used in roughly half of all scam-related transactions, according to Australian Banking Association CEO Anna Bligh.
In response, CBA and others have introduced strict limits, like CBA’s AU$10,000 monthly cap on transfers to crypto exchanges.
Broadbent had already invested AU$21,000 through Stormrake without issue a month earlier, but the bank stepped in as soon as he sought more.
When he contacted CBA, fraud investigators told him Stormrake had a history of scam complaints and questioned his intent.
Despite his credentials and repeated assurances that he was acting knowingly, the bank wouldn’t budge. In recorded calls, CBA staff dismissed his explanations and even suggested he’d blame the bank if the investment failed.
Pain
To ensure Stormrake wasn’t scamming Broadbent, the bank suggested he sell the crypto and convert it back into cash.
And he did —at a loss of AU$3,000. The bank later apologised and reimbursed AU$476.67. Yes, just 470 bucks. They even factored in fees charged by Stormrake and the falling crypto prices at the time.
“They factored in the negative market movement against me in their offer, but I wonder whether they would have done the same had the crypto market gone up, as it has done since,” Broadbent stated.
Quite a painful experience. But not to worry! One CBA employee apologised to Broadbent and remind him that the bank is doing the right thing by “warning him of the dangers of crypto investment scams”:
Our transaction limits, introduced nearly two years ago, are part of our wider approach to keep our customers safe from scams, which has resulted in a 70 per cent reduction in customer scam losses over the last two years.
CBA employee
Read also: Coinbase Urges Next Australian Federal Gov to Act on Crypto Regulation
Credit: Source link
