A California man, Ken Liem, has filed a lawsuit against three banks based in Asia, accusing them of enabling crypto fraudsters to steal nearly $1 million.
The legal action, submitted to a California district court on December 31, 2024, claims the banks failed to take basic steps to prevent the alleged scam.
According to the lawsuit, Liem was approached on LinkedIn in June 2023 by scammers promoting a cryptocurrency investment opportunity. Liem was convinced they would invest on his behalf, so he transferred the funds over the following months.
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However, the money was instead sent to accounts at DBS Bank in Singapore, as well as Fubon Bank and Chong Hing Bank in Hong Kong, before being moved to other third-party accounts.
Liem's attorneys allege the banks violated the US Bank Secrecy Act, which requires financial institutions to maintain transaction records and report suspicious activity.
They also argue that DBS is subject to this law due to its California branch. Meanwhile, Fubon and Chong Hing processed transactions tied to a US bank account held by Liem.
Additionally, the lawsuit accuses these banks of neglecting essential checks such as Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
Liem’s lawyers argue that these checks would have revealed warning signs about the account holders, which could prevent the accounts from being created. They claim the banks likely ignored clear evidence that the funds were linked to fraudulent activities.
Meanwhile, in Vietnam, the Hanoi City Police Department exposed and stopped a $1.17 million crypto scam. What was the scam about? Read the full story.
