A man from California is suing three banks in Asia, saying they were careless in stopping a cryptocurrency scam that nearly cost him $1 million. The victim, who was allegedly deceived over several months, claims that the banks neglected to conduct necessary due diligence. The complaint was sent to a district court in the state of California on December 31st, 2024.
In June 2023, individuals claiming to represent a profitable cryptocurrency investment opportunity contacted Ken Liem on LinkedIn. According to Liem’s lawsuit, Liem then became the victim of a “pig butchering” fraud.
Liem Claims Fraud Involving Banks
Attorneys for Liem claim their client fell for a con artist’s promise to invest large quantities of money after he sent them to him. Financial institutions participating in the lawsuit are DBS Bank Inc., which has its headquarters in Singapore, and two banks that have offices in Hong Kong: Fubon Bank Ltd and Chong Hing Bank Company for Hong Kong. Subsequently, the money was transferred to different accounts, further complicating the identification of the criminal.
Liem Accuses Banks of Ignoring Fraud
According to Liem’s legal team, if the banks had conducted sufficient Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, they would have detected the transactions’ dubious character. According to the lawyers, it would have been easy to tell. That the account holders weren’t doing anything genuine or legal if one had just looked at their activity. The lawsuit reveals that the banking defendants seemingly ignored.
The illicit proceeds were transferred from. The United States to various Asian entities under their management. They helped fund pig-butchering scams by facilitating the extraction of millions of dollars. The complaint further states that the bank is broken. The United States Bank Secrecy Act requires financial institutions to keep meticulous records of all transactions and notify of any questionable behavior.
Liem Sues Banks and Firms for Fraud
Fubon and Chong Hing handled Liem’s transactions. Via his Wells Fargo account in the United States, DBS has a branch in California Man Sues Banks. The attorneys for Liem assert that these banks have regulations and fall within the jurisdiction of the United States.
Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited are four Hong Kong-based businesses. They are all accused of wrongfully diverting Liem’s cash to third parties under the false pretense that it would be invested in Bitcoin. In the dispute, the banks are not the only parties that have been brought up.
Crypto Losses Drop Hacking Still Leads
Hacks and fraud cost the cryptocurrency industry $1.49 billion in 2024, down 17% from the previous year. Reporting $1.47 billion (or 98.1% of the total damages) across 192 instances. Blockchain security platform Immunefi found that hacking was the leading cause.
Despite a 72% increase from the previous year Fraud (California Man Sues Banks) accounted for only 1.9% of the total losses, amounting to $28 million. As the number of successful assaults dropped 27.5% from 320 in 2023 to 232 in 2024, the decrease in overall Crypto loss reflects enhanced security measures.
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