A California resident has filed a lawsuit against three Asia-based banks, accusing them of neglecting necessary checks that could have prevented crypto scammers from defrauding him of nearly $1 million. The legal action, filed on Dec. 31, 2024, in a district court in California, centers on Ken Liem, who claims he was deceived by a “pig butchering” scam after being contacted on LinkedIn in June 2023 about a cryptocurrency investment opportunity.
Liem’s attorneys assert that over several months, the fraudsters persuaded their client to transfer significant sums of money, which were sent to accounts at Fubon Bank and Chong Hing Bank in Hong Kong, as well as DBS Bank in Singapore. The money was then allegedly transferred to other third-party accounts.
Accusations Against the Banks
The lawsuit accuses the banks of failing to perform essential “Know Your Customer” (KYC) checks and anti-money laundering procedures, which could have flagged suspicious activity and stopped the scammers from opening accounts in the first place. Liem’s legal team claims that the banks turned a blind eye to illicit financial transactions moving from the United States to several entities in Asia, thereby enabling the fraud.
The lawsuit further alleges that the banks violated the US Bank Secrecy Act, which mandates that financial institutions maintain records of transactions and report any suspicious activities to the US Department of Treasury’s Financial Crimes Enforcement Network. According to Liem’s lawyers, DBS Bank, with a branch in California, and Fubon and Chong Hing, which processed the transactions through Liem’s Wells Fargo account, should be subject to the Act’s requirements.
In addition to the banks, the lawsuit also names several Hong Kong-based business entities—Richou Trade, FFQI Trade, Xibing, and Weidel. These companies are accused of facilitating the scam by opening the accounts where Liem’s funds were transferred. According to Liem’s attorneys, these businesses misled their client by claiming that his money would be used for cryptocurrency investments, only to divert the funds to third-party accounts.
Liem’s legal team is seeking a jury trial and demands a minimum of $3 million in damages. The lawsuit highlights the financial and emotional toll the scam has taken on Liem, who was allegedly misled into believing his money was being invested in legitimate opportunities.
At the time of publication, Fubon Bank, Chong Hing Bank, and DBS Bank had not responded to requests for comment. Similarly, the business entities accused of misappropriating Liem’s funds could not be reached for comment.
The case raises broader concerns about the role of financial institutions in preventing fraud. Liem’s allegations suggest that even established banks may be vulnerable to failing in their obligations to detect and prevent fraud, particularly when the scam involves cross-border transactions. If the banks are found negligent, this case could prompt financial institutions to reassess their anti-fraud protocols, especially in the context of increasingly complex online scams.
Financial institutions may need to strengthen their KYC and anti-money laundering procedures to better detect fraudulent activity. As scams continue to evolve, it becomes essential for both financial institutions and consumers to remain vigilant in preventing such crimes.
Author’s Opinion
This case illustrates the importance of proactive measures to prevent fraud. While the banks in question may have overlooked essential due diligence, the growing sophistication of online scams demands that financial institutions take greater responsibility in safeguarding their clients’ assets. Consumers, too, must stay alert to avoid falling victim to such schemes. It is clear that tighter safeguards and more comprehensive oversight are necessary in today’s digital world, where scammers are becoming increasingly savvy.
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