- A California victim wants $3M in damages, alleging bank negligence.
- Crypto scams caused $28M in losses in 2024, representing a 72% increase.
In the California district court on December 31, 2024, a man named Ken Liem from California filed a lawsuit against three major Asian banks. He claimed they were negligent in not enforcing standard Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, which he believes allowed a cryptocurrency scam to steal nearly $1 million from him. Essentially, the complaint asserts that by not properly implementing these protocols, the banks enabled the scammers to wash his money.
The con trick started on LinkedIn in June 2023, with the swindlers pretending to be reps of a profitable cryptocurrency investment opportunity. Over several months, they managed to persuade Liem to move substantial funds into Fubon Bank Limited (Hong Kong), Chong Hing Bank Limited (Hong Kong), and DBS Bank Limited (Singapore). As the money was transferred to external accounts, the chances of recovering it are extremely low.
Hong Kong-Related Companies in Crypto Scam
In addition, four companies based in Hong Kong – Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited – were also implicated. It’s suspected that they conspired with the fraudsters, using their accounts to withdraw Liem’s funds under false promises of cryptocurrency investments.
Besides these, four companies from Hong Kong – Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited – were also named. It appears they worked together with the scammers by setting up accounts to withdraw Liem’s money on the basis of deceptive claims about cryptocurrency investments.
Financial institutions and banks are accused of neglecting their duties and breaking the U.S. Bank Secrecy Act by failing to identify warning signs that could have thwarted the scheme. Lawyers for Liem claim that basic investigation would have uncovered suspicious activities linked to the fraudulent accounts.
In this case, Liem is seeking at least $3 million in compensation and furthermore, requests a jury trial. The case underscores the growing issue of the pig butchering scam. Moreover, it underscores the vital part that financial institutions must play in preventing such fraudulent activities.
2024 saw billions of dollars being swindled globally through pig butchering scams, leading to numerous victims suing the responsible institutions. These actions have put significant pressure on financial organizations due to their perceived negligence. Interestingly, crypto losses decreased by 17% to $1.49 billion in 2024. However, fraudulent activities have skyrocketed with a staggering 72% increase, highlighting the urgent need for robust financial security measures.
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2025-01-05 15:48