Many virtual currency owners can cash out into their bank accounts. Some people in Israel spent US$3,000 to buy Bitcoin in the early years. It has now risen to US$324,000, but the local bank refused to deposit because the source of funds was “problematic” and the possibility of money laundering could not be ruled out.
It is reported that Esther Freeman, a woman in Israel, bought Bitcoin for US$3,000 (approximately HK$23,300) 8 years ago. It is now worth US$324,000 (approximately HK$2.52 million). When she was about to deposit the money in the bank, she was The bank refused. The bank stated that the source of the funds was related to “money laundering and terrorism crimes.”
The woman stated that these Bitcoins have been kept in the digital wallet since they were purchased, and no transaction has been made. It even said that they have been patronizing this bank, and they know that they have not participated in money laundering activities at all. She said that she now needs to give this money to her children to buy a house.
The court ruled that the Israeli bank cannot tighten its financial restrictions simply because customers have purchased virtual currencies. The bank also stated that it will study the case again and deal with it appropriately.