Bank refuses to deposit retirees’ huge Bitcoin savings

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Esther Freeman, 69, invested around $ 3,000 in Bitcoin eight years ago, but Israeli bank Hapoalim is unwilling to accept its 100 times higher profits, saying there is a “risk of money laundering. money and terrorist financing “when she made her first cash purchase.

Lital Dobrovitsky 16: 3525.11.21

Esther Freeman, a 69-year-old Israeli retiree, took the advice of her family members eight years ago and bought 10,000 shekels (about $ 3,160) worth of Bitcoin. After HODLing digital currency for eight years, Freeman decided she wanted to convert some of her Bitcoin into fiat currency last June, finding that her crypto had reached nearly NIS 1 million in value.

“I’m young at heart,” said Freeman, who lives in an assisted living facility. “I listened to my son and nephews and decided to give it a go. I had no prior knowledge of the matter and was completely naive. I never dreamed that 10,000 shekels could become almost 1 million shekels. ”

Esther Freeman. Photo: Haim Hornshtein

However, the fairytale story has yet to reach a happy ending. Freeman filed a lawsuit in Tel Aviv District Court last week through attorneys Shaul Zioni and Lior Kiperman of law firm Zioni, Pillersdorf, Phillip Advocates against Bank Hapoalim after refusing to deposit the funds he she had raised through her Bitcoin investment. Freeman has had an account at the bank for 40 years, but the bank says it refuses to accept the funds because Freeman bought the Bitcoin in cash and therefore has no way of verifying the route of the money. .

“The characteristics of digital currencies allow their transfer in an anonymous and unregulated manner, repeatedly bypassing the need to use financial institutions subject to anti-money laundering and anti-terrorist financing regulations, and therefore it is a activity that carries a great risk of money laundering and terrorist financing, ”the bank wrote in a letter to Freeman.

“The bank knows me,” Freeman said. “I have no money anywhere other than Hapoalim Bank. They know that I am not a money launderer and that I have no activity outside the bank. I am a retiree and my four children also have bank accounts and I need this money to help one of my children buy an apartment and for my own well-being.

“Despite repeated court condemnations on this matter, some banks unfortunately continue to make it harder for innocent customers to deposit funds from digital currencies for no reason,” added lawyer Shaul Zioni. “This case is all the more absurd as the plaintiff has been a retiree and a client of the bank for 40 years who needs money. I hope the bank will come to its senses and there will be no need of that justified trial. ”

Hapoalim Bank responded, “According to the statement, the client requested to deposit funds of around NIS 1 million converted to Bitcoin. According to the client, her son bought the Bitcoin for her in cash. As can be seen see in the statement, no actual documentation was provided to verify the cash transaction. Additionally, from some of the facts stated in the statement, it is evident that the Bitcoin held by the client was transferred between different wallets over time and was not held in a single wallet. The reason for the transfer between wallets has not been clarified. Given these circumstances, in which the purchase was made in cash and Bitcoin was been transferred between portfolios, the bank is required by law to clarify the source of the fund, which was not possible in this particular case. Once we have received the documentation required by law, we will be able to deposit the funds. funds in the customer’s account.

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