✨ Crypto Scam Victim Says Banks Turned a Blind Eye to Fraud
posted 3 Jan 2025
A California resident, Ken Liem, has filed a lawsuit against three Asia-based banks, accusing them of negligence that enabled scammers to steal nearly $1 million in a cryptocurrency fraud.
The lawsuit, filed in a California district court on December 31, 2024, names Hong Kong's Fubon Bank Limited, Chong Hing Bank Limited, and Singapore's DBS Bank Limited as defendants.
In June 2023, Liem was contacted on LinkedIn about a cryptocurrency investment. Believing it was legitimate, he sent large sums of money over several months. However, the funds were sent to bank accounts and then transferred elsewhere, making them inaccessible to him.
The victim claims that banks neglected crucial security measures, such as verifying account holders’ identities and monitoring for suspicious activity. Proper checks, Liem argues, could have prevented the scam.
His lawyers accuse the banks of violating U.S. laws requiring the tracking and reporting of suspicious financial transactions, pointing to DBS Bank's California branch and Liem's Wells Fargo transactions as evidence of non-compliance.
In the document, Hong Kong-based entities - Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited are named as defendants too. These entities are accused of unlawfully diverting Liem's funds to third-party accounts and misrepresenting the intended use of the funds for cryptocurrency investments.
Liem is seeking a jury trial and a minimum of $3 million in damages. As of now, the banks and associated entities have not publicly responded to the allegations.Liem fell victim to a scam known as "pig butchering".
Originating from the Chinese term "sha zhu pan," this scam involves fraudsters building trust with victims over time, akin to fattening a pig before slaughter. Once trust is established, victims are persuaded to invest in fraudulent schemes, often involving cryptocurrency, leading to significant financial losses.
