Cryptocurrency Scam Victim Files $3M Lawsuit Against Three Asian Banks
Date: 2025-01-03 Author: Oliver Abernathy Categories: BUSINESS
California resident Ken Liam has filed a lawsuit against three Asian banks: Hong Kong-based Fubon Bank Limited and Chong Hing Bank Limited, as well as Singapore-based DBS Bank. He claims that through accounts at these institutions, he was scammed out of nearly $1 million in a cryptocurrency “pig-batch” scheme in which a victim is manipulated into making a fictitious investment by posing as a romantic interest or trusted partner.
In the lawsuit, filed on December 31, 2024, Liam describes how he was offered a lucrative cryptocurrency investment opportunity through LinkedIn in June 2023. He was confidently convinced to transfer the money to accounts at Fubon Bank, Chong Hing Bank and DBS Bank, believing that it would be safely deposited in his name.
According to the documents, the banks failed to perform customer due diligence (KYC) and failed to implement necessary anti-money laundering (AML) measures. This allowed the fraudsters to carry out a number of suspicious transactions that could have been prevented with due diligence on the part of the banks.
Liam also claims that the banks violated the US Bank Secrecy Act because DBS Bank operates in California, and Fubon Bank and Chong Hing Bank processed the transactions through his US account at Wells Fargo. This gives local financial authorities jurisdiction to investigate such cases.
Under US law, financial institutions are required to monitor and report suspicious transactions to prevent fraud and money laundering.
In addition to the banks, the lawsuit also names four Hong Kong companies, such as Richou Trade Limited and others, that opened accounts in Liam’s name and illegally diverted funds to third-party accounts.
Liam is seeking at least $3 million in damages, blaming both the banks and the companies for his financial losses. The claim is part of a larger wave of lawsuits targeting the “pig-batch” scheme, which has become the biggest threat in 2024, draining more than $3.6 billion from the cryptocurrency sector.
Many victims of such scams are left without funds or recourse, but some decide to take legal action. For example, in October 2024, US citizen Hector Gustav Gutierrez filed a lawsuit after losing 33 bitcoins in a “pig-batch” scheme organized by a Southeast Asian crime group.
