California Victim Sues Asian Banks
back Became the victim of nearly $1 million crypto scam, A California resident is suing three Asian banks, accusing them of ignoring basic checks that could have prevented fraud.
Plaintiff Ken Liem filed a lawsuit in California court on December 31, 2024.
$1M Cryptocurrency Fraud Sparks Lawsuit
this Lawyer said Lin was deceived in the “pig killing” scam. In June 2023, scammers contacted him via LinkedIn with an offer to invest in cryptocurrency.
“pig slaughtering” is a type Cryptocurrency Scam This is different from traditional methods of cryptocurrency fraud. The term is a metaphor for the process of slowly fattening pigs before slaughter. Again, in this scam, the fraudster slowly builds trust with the victim over time and then eventually deceives them.
For months, Liem transferred large sums of money to individuals posing as cryptocurrency investors. He assumes that individuals will use funds to invest.
According to Lam’s legal team, the funds were transferred to three Asian banks: Hong Kong’s Fubon Bank Ltd., Chong Hing Bank Ltd. and Singapore’s DBS Bank Ltd. The alleged fraudsters then transferred the funds to third-party accounts.
Liem’s lawyers argued that the bank failed to conduct adequate checks, including know-your-customer (KYC) and anti-money laundering (AML). This may have been tagged Suspicious activity and stop scammers from opening accounts.
The banks failed to report the transfer of illicit funds from the United States to multiple Asian entities they managed. As a result, banks apparently facilitated the diversion of millions of people for illegal purposes.
Additionally, the lawsuit accuses the bank of violating the U.S. Bank Secrecy Act. The bill requires financial institutions to report suspicious activity and keep detailed transaction records.
Because DBS has branches in California, the bank is subject to the act. Likewise, Fubon and Chong Hing processed transactions through Liem’s Wells Fargo account in the United States.
Liem is seeking a jury trial and at least $3 million in damages. damages.
Additionally, the message is Cryptocurrency Hacks and Fraud Losses exceeding $2.3 billion in 2024. Another disturbing trend is the prevalence of “pig slaughter” Scam. These elaborate fraud schemes defrauded more than $3.6 billion Unsuspecting users.
“The surge in access control breaches and sophisticated scams such as pig killings highlights the importance of implementing AI-driven risk assessment, transaction verification and anomaly detection tools. Safety Web3 security company Cyvers told BeInCrypto: “We must continue to evolve to deal with increasingly sophisticated and coordinated attacks.”
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
