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A California resident, Ken Liem, has filed a lawsuit against three Asia-based banks, accusing them of negligence in preventing a sophisticated cryptocurrency scam that cost him nearly $1 million. The legal action, submitted to a California district court on December 31, 2024, centers on allegations that Fubon Bank Limited and Chong Hing Bank Limited, both based in Hong Kong, and Singapore’s DBS Bank Limited failed to implement adequate safeguards, enabling scammers to exploit their systems.Details of the Alleged ScamAccording to the lawsuit, Liem fell victim to a "pig butchering" scam—a scheme where fraudsters build trust over time to encourage significant financial transfers. Initiated via a LinkedIn approach in June 2023, the scammers reportedly posed as cryptocurrency investors, convincing Liem to transfer substantial funds over several months. These funds were deposited into accounts held at the defendant banks before being funneled to third-party entities.Liem’s legal representatives argue that the banks failed to execute critical Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. Such measures, they contend, could have flagged the fraudulent activities and prevented the accounts from being opened. The attorneys claim that even basic scrutiny would have revealed a lack of credible evidence regarding the legitimacy of the account holders' business activities, raising red flags.Allegations Against the BanksThe lawsuit asserts that the banks may have knowingly facilitated the scam by ignoring suspicious fund transfers. It further alleges that the banks failed to comply with the US Bank Secrecy Act, which mandates financial institutions operating in the US to maintain comprehensive transaction records and report suspicious activities to the Financial Crimes Enforcement Network (FinCEN).Liem’s legal team emphasizes that DBS Bank operates a branch in California, while Fubon and Chong Hing processed transactions through his Wells Fargo account in the US, thereby making them subject to these regulations.Accusations Against Hong Kong-Based EntitiesIn addition to the banks, the lawsuit targets Hong Kong-based companies Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited. These entities allegedly misappropriated Liem’s funds, falsely claiming they would be used for legitimate cryptocurrency investments. Instead, the funds were diverted to unidentified third-party accounts.Seeking JusticeLiem is requesting a jury trial and a minimum of $3 million in damages, citing financial losses and the emotional toll of the scam. At the time of writing, the accused banks and entities have not provided a response to the allegations.This case underscores the critical importance of robust KYC and AML protocols in financial institutions and highlights the growing sophistication of cryptocurrency scams targeting unsuspecting individuals.#CryptoScamAlert #KYCCompliance #FinancialFraud #CryptoNews #BankingRegulations