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.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
