Major Israeli bank, Hapolim Bank, recently filed a letter of defense to refute claims by 69-year-old pensioner Esther Freeman that she was allowed to accumulate a profit of $320k from a $3,000 bitcoin investment nearly nine years ago. .
According to a Thursday report by a local media outlet, the bank claims that its insistence on denial of deposits was due to cases where digital currencies are used to facilitate money laundering and terrorist financing.
Hapoalim Bank Rejects $320K Deposit From Crypto Profits
Earlier in November 2021, Freeman filed a lawsuit against the bank, demanding the entity declare that the source of the funds invested in bitcoin is “known, clear and supported by references.”
In a statement, the bank noted that it was impossible to trace the funding path in relation to Freeman’s crypto purchases in 2013. It added that it has not been able to make any connection as to when he transferred the money from his account for the purchase. of bitcoin.
The bank said, “Only in cases where the funds are used to purchase virtual currency and the proceeds are deducted from and returned to the same account, the receipt of funds can be confirmed – then the plaintiff has satisfied this condition.” Not completed,” the bank said.
Hapolim also pointed out that there is no concrete evidence of BTC purchases because Freeman did not purchase the cryptocurrency from a registered exchange but in cash from a private individual.
failure to provide reference
“Plaintiff failed to furnish actual reference to the purchase price of the virtual currency.” – Reads new reports.
Additionally, the bank noted that at the time of the purchase, Israel’s financial regulator, the Bank of Israel, had mandated banking organizations not to accept deposits of funds from crypto transactions.
For the above reasons, Hapolim Bank argued that it should not be compelled to accept deposits of funds derived from cryptocurrency transactions, considering the financial risks associated with it.
In response, Freeman’s lawyer said, “It is very unfortunate to find that Bank Hapolim has decided to wage a bitter fight over its longtime customer, a pensioner, whose only desire is to receive money in his bank account, which It is his and is generated from the digital coins he bought many years ago.”
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