Catenaa, Wednesday, January 22, 2025 – A California resident has filed a lawsuit against three Asian banks for failing to prevent a nearly $1 million loss in a “pig butchering” cryptocurrency scam.
Ken Liem, the plaintiff, alleges negligence in a legal filing submitted to a California district court on December 31, 2024.
He claims the banks Fubon Bank Limited, Chong Hing Bank Limited, and DBS Bank Limited failed to conduct proper Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which would have flagged suspicious activity.
Liem was initially approached via a social media platform in June 2023, where scammers posed as representatives of a lucrative crypto investment opportunity.
Over several months, Liem transferred large sums of money to the scammers, who funneled the funds into accounts at the three banks.
The money was subsequently transferred to third-party accounts, making it difficult for Liem to recover his losses.
Liem’s legal team argues that the banks should have noticed red flags in the accounts and are accusing them of violating the U.S. Bank Secrecy Act.
The lawsuit also names four Hong Kong-based entities allegedly involved in the fraudulent activities. Liem seeks at least $3 million in damages and demands a jury trial.
The lawsuit underscores the growing risk of crypto scams, with “pig butchering” schemes causing billions in losses in 2024 alone.
Liem’s case seeks to hold financial institutions accountable for their role in preventing such fraud.
