An Australian cryptocurrency trader, Allan Flynn, has filed a lawsuit against two banks for closing their trading accounts without notice. In the lawsuit filed in ACT Civil and Administrative Court, Flynn alleges that the sudden and illegal action of the two banks has caused significant losses to his business.
The merchant who also owns a cryptocurrency exchange with 450 registered users had a legal business with the exchange, being registered in AUSTRAC. Its clients use the exchange primarily to buy digital assets like Bitcoin, against which there is no law in Australia.
Interestingly, this is not the first time that banks have closed Flynn's accounts. More than 20 of its accounts have been closed by more than 5 banks in the last three years, leading to the opening of two new ones. He claims that he clearly mentioned to the two banks that the accounts were for cryptocurrency trading, but that didn't stop them from suddenly closing them. He is not alone in this either.
“In no way am I alone, nor am I the first. I know of at least one other merchant who has had accounts closed more than 60 times, and he added how am I supposed to run a legal business if I can't get a bank account? "
Although he was informed by one of the banks that his account will be closed in a few days, all attempts to open a new account failed because according to the bank, he was under investigation for crypto fraud. The other bank, ANZ, reportedly also informed its employees and other banks that Flynn was deceptive.
Cryptocurrency traders and investors face discrimination globally. In India, which has a very large market for cryptocurrencies, banks were instructed not to do business with anyone involved with cryptocurrencies. However, the Supreme Court issued a landmark ruling last year that gave crypto companies legal bases to operate.
Flynn is seeking $ 250,000 in restitution from Westpac and ANZ stating that his systematic prejudice has cost him his once thriving business.