My bank ING DIRECT discovered that a customer who bought bitcoin from me last month, paid me money with a stolen account. That account's bank, ANZ in this case, demands it. My bank will empty my bank account to pay for it.

Phone call I received: "because the money is stolen, you have never been entitled to this money. This is happens. Your account will be empty in a couple of days and there is nothing I can do for you."

Since the transaction happened on localbitcoins, with purchase and delivery of goods provable, it seems to me that I am punished for someone else's fault. I already contacted localbitcoin to suspend the buyer's account. I also contacted ANZ bank's efraud team by email.

What to do? And if I call the bank to ask for paper trail, what document do I ask for that can authorize them to empty my account?

The event happens in Australia, but I think in general the western law system work the same?