Allan Flynn, a cryptocurrency exchange operator, has filed lawsuits against popular Australian banks ANZ and Westpac for shutting down his accounts, which has put his business to a halt.
In a report published by The Australian Financial Review (AFR) today, Flynn is seeking that the banks pay him $250,000 as compensation for the losses he suffered due to the banks’ actions. In addition, Flynn is demanding that $125,000 should be paid for emotional distress.
He disclosed that he is planning on increasing the amount the banks should pay as compensation.
Flynn added that at least 20 of his accounts had been illegally shut down over the last three years by Australian banks, including NAB, ING, Bendigo Bank.
According to the plaintiff, it was due to the frequent closure of his accounts in other banks that he decided to create new accounts with ANZ and Westpac, revealing to the banks his intentions of using the accounts for his crypto business. However, the newly created accounts suffered the same fate as others, as they were closed immediately.
“How am I supposed to run a lawful business if I can’t get a bank account?” the complainant asked in frustration.
He said the banks claimed the accounts were under investigation for cryptocurrency fraud because of a flagged crypto transaction.
Notably, Flynn has been on the case since last year. As per the report, the plaintiff took the case to the Australian Financial Complaints Authority (AFCA) but was told his accounts were closed due to Westpac’s terms and conditions.
However, the bank announced a $250 compensation for failing to inform him about their decision before implementing it.
“It’s pathetic. I’d just lost my business, and they offered me $250 for stress and inconvenience. I haven’t seen a cent of it either,” Flynn added.
Not only was his account abruptly closed by ANZ, but Flynn also narrated that an employee of the bank has been spreading lies about his involvement in fraud to other financial institutions and customers.
Furthermore, the complainant was removed as a signatory from a deposit account held in his brother’s name.
Reacting to the development, a spokesperson of ANZ said the bank would defend the suit to any length but failed to comment further since the case is before a tribunal.
The first hearing of the case is expected to take place in late March 2021.
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