Three Asian banks face a $3 million lawsuit for allegedly failing to protect a client from a scam that cost him nearly $1 million. The banks are accused of neglecting key Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.

Victim of Crypto Scam Files Lawsuit

Ken Liem, a California resident, has filed a lawsuit against three banks: Fubon Bank Limited in Hong Kong, Chong Hing Bank Limited, and Singapore-based DBS Bank. He claims he was scammed through accounts hosted by these banks.

Liem lost nearly $1 million after being targeted by fraudsters who manipulated him into investing in fake cryptocurrency projects.

"Pig Butchering Scams" – A Dangerous Fraud Tactic

Fraudsters often use a tactic known as "pig butchering scams," where they gain the victim's trust by pretending to be a romantic interest or a reliable connection. Once trust is established, they lure the victim into investing in fake crypto projects.

According to the lawsuit, Liem fell victim to this tactic in June 2023 when he was offered a supposedly lucrative investment opportunity on LinkedIn. Over several months, he transferred nearly $1 million to accounts managed by the aforementioned banks.

The lawsuit alleges that the banks failed to conduct sufficient KYC and AML checks, which could have flagged suspicious activities. It also accuses the banks of violating the U.S. Bank Secrecy Act, as DBS Bank operates a branch in California, and the other two banks reportedly processed transactions through Liem's U.S.-based Wells Fargo account.

The U.S. Bank Secrecy Act requires financial institutions to monitor, document, and report suspicious transactions to prevent fraud and money laundering.

Additional Entities Named in the Lawsuit

Four Hong Kong-based entities—Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited—are also named in the lawsuit. These entities allegedly opened accounts in Liem's name and illegally redirected his funds to third-party accounts.

Compensation Demanded and the Broader Impact of Scams

Liem is seeking at least $3 million in damages, holding both the banks and the named entities accountable for the losses incurred.

Pig butchering scams became the most widespread type of cryptocurrency fraud in 2024. According to a report by Cyvers, over $3.6 billion was siphoned from the crypto sector through such schemes.

Other Victims Seek Justice

Many victims of cryptocurrency fraud are turning to courts in search of justice. For instance, Hector Gustav Gutierrez, another U.S. citizen, filed a lawsuit after losing 33 bitcoins in a pig butchering scam orchestrated by a Southeast Asian crime syndicate.

This case highlights the persistent threat of crypto fraud and underscores the need for stricter measures to protect customers.

#Cryptoscam , #CyberSecurity , #HackerAlert , #blockchain , #CryptoNewss



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