Ken Liem, a California resident, has initiated a lawsuit against three Asian banks, alleging negligence in preventing a cryptocurrency scam that resulted in a loss of nearly $1 million.
Filed in a California district court on December 31, 2024, the lawsuit claims that Fubon Bank Limited, Chong Hing Bank Limited, and DBS Bank Limited failed to conduct adequate due diligence and implement necessary Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
Liem fell victim to a “pig butchering” scam after being approached on LinkedIn in June 2023 by scammers who posed as representatives of a lucrative cryptocurrency investment opportunity.
Over several months, he was persuaded to transfer substantial amounts of money, which were deposited into accounts at the aforementioned banks. The scammers subsequently moved the funds to third-party accounts, complicating recovery efforts.
Liem’s legal team argues that the banks should have recognized the suspicious activities associated with the accounts, suggesting a basic review would have highlighted red flags.
The lawsuit also implicates four Hong Kong-based entities—Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited—accused of facilitating the diversion of Liem’s funds under false pretenses.
Seeking a minimum of $3 million in damages and a jury trial, Liem’s case underscores the persistent threat of cryptocurrency scams and the accountability of financial institutions in safeguarding against fraud.
