Crypto Scam Victim Sues Asian Banks for Allegedly Failing to Prevent $1 Million Fraud

Crypto scam victim sues Asian banks for $3 million, accusing DBS Bank, Fubon Bank, and Chong Hing Bank of failing to prevent a massive $1 million fraud. The lawsuit highlights the banks’ alleged negligence in implementing essential Know Your Customer (KYC) and Anti-Money Laundering (AML) measures, which could have flagged suspicious activity.

In a shocking turn of events, Ken Liem, a California resident, has filed a $3 million lawsuit against Hong Kong-based Fubon Bank Limited, Chong Hing Bank Limited, and Singapore-based DBS Bank after falling victim to a complex crypto scam.

How the Crypto Scam Unfolded

According to the lawsuit filed on December 31, 2024, Liem was targeted in a sophisticated pig butchering scam—a scheme where scammers establish trust with victims, often by posing as romantic partners or business connections before tricking them into fraudulent crypto investments.

Liem claims he was approached on LinkedIn in June 2023 by an individual promoting a seemingly lucrative cryptocurrency investment. Over several months, he transferred nearly $1 million into accounts allegedly held by Fubon Bank, Chong Hing Bank, and DBS Bank under the assumption that his funds were being securely invested.

However, the lawsuit alleges that these banks failed to perform critical KYC and AML procedures, which could have identified suspicious activity and potentially prevented the financial losses.

The case took a significant turn as Liem argued that the banks not only neglected due diligence but also violated the U.S. Bank Secrecy Act. The Act mandates financial institutions operating within U.S. jurisdictions to monitor, document, and report suspicious transactions actively.

DBS Bank operates a branch in California, directly placing it under U.S. financial regulations. Meanwhile, Fubon Bank and Chong Hing Bank allegedly processed transactions through Liem’s Wells Fargo account, further connecting them to U.S. financial oversight.

“Financial institutions have a legal duty to monitor and report potentially fraudulent activity,” said John Reed Stark, former SEC enforcement attorney. “Failing to do so not only endangers customers but also undermines the integrity of the entire financial system.”

The lawsuit also targets four Hong Kong-based entities—Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited. These companies allegedly opened accounts on Liem’s behalf and funneled the stolen funds into third-party accounts, intensifying the complexity of the scam.

Liem claims these entities acted as intermediaries, facilitating the unauthorized transfer of his funds while the banks failed to question the legitimacy of the transactions.

Legal Ramifications and Growing Concerns – Crypto Scam Victim Sues Asian Banks

As the crypto scam victim sues Asian banks, legal experts believe the case could set a precedent for holding financial institutions accountable in crypto-related fraud.

Katherine Wu, a prominent blockchain researcher, emphasized the importance of stronger enforcement, stating:
“This case underscores the urgent need for banks to tighten compliance measures when dealing with cryptocurrency-related accounts. Ignorance or lack of due diligence is no longer an excuse in a financial system this interconnected.”

Liem seeks a minimum of $3 million in damages, arguing that the combined failures of the banks and third-party entities directly contributed to his financial losses.

Pig butchering scams have surged dramatically, becoming a dominant threat vector in 2024. These scams often involve cybercriminal syndicates targeting victims through dating apps, social platforms, or professional networks.

A recent Cyvers report revealed that pig butchering scams drained over $3.6 billion from the crypto market in 2024 alone. In a similar incident, U.S. citizen Hector Gustav Gutierrez filed a lawsuit in October 2024 after losing 33 Bitcoin, valued at approximately $1.3 million, to a pig butchering scam linked to a Southeast Asian crime syndicate.

“The anonymity and cross-border nature of cryptocurrency transactions make these scams particularly challenging to prosecute,” explained blockchain analyst CipherTrace. “However, cases like Liem’s may inspire stronger regulatory enforcement and international cooperation.”

Crypto Scam Victim Sues Asian Bank – Impact on the Banking Sector

The lawsuit raises serious questions about the accountability of financial institutions in preventing crypto-related fraud. Experts argue that banks must adopt more rigorous KYC and AML practices, especially when facilitating transactions linked to volatile digital assets.

“If the crypto scam victim sues Asian banks successfully, it could redefine how banks are held responsible for indirect involvement in crypto fraud cases,” commented legal analyst Sarah Kendall.

The outcome of Liem’s case may encourage other victims of crypto scams to seek legal recourse, putting more pressure on banks to reassess their fraud prevention mechanisms.

As the legal proceedings unfold, all eyes are on the crypto scam victim sues Asian banks lawsuit. If Liem’s claims are validated in court, it could mark a significant victory for scam victims seeking justice against financial institutions accused of negligence.

With over $3.6 billion lost in crypto scams in 2024 alone, the need for stricter compliance and international collaboration has never been clearer.

The crypto scam victim sues Asian banks case has sparked widespread debate, as the crypto scam victim sues Asian banksfor allegedly failing in due diligence.

Legal experts argue that when a crypto scam victim sues Asian banks, it highlights the need for stricter compliance. If the crypto scam victim sues Asian banks successfully, it could reshape global financial accountability.

Liem’s lawsuit could be a pivotal step toward a safer digital asset landscape, holding financial giants accountable for lapses in security. Stay updated with the latest developments in the cryptocurrency industry through The BIT Gazette