A California man, Ken Liem, has filed a lawsuit in opposition to three banks based mostly in Asia, accusing them of enabling crypto fraudsters to steal almost $1 million.
The authorized motion, submitted to a California district court docket on December 31, 2024, claims the banks did not take primary steps to stop the alleged rip-off.
In response to the lawsuit, Liem was approached on LinkedIn in June 2023 by scammers selling a cryptocurrency funding alternative. Liem was satisfied they’d make investments on his behalf, so he transferred the funds over the next months.
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Nonetheless, the cash was as an alternative despatched to accounts at DBS Financial institution in Singapore, in addition to Fubon Financial institution and Chong Hing Financial institution in Hong Kong, earlier than being moved to different third-party accounts.
Liem’s attorneys allege the banks violated the US Financial institution Secrecy Act, which requires monetary establishments to take care of transaction data and report suspicious exercise.
Additionally they argue that DBS is topic to this regulation as a consequence of its California department. In the meantime, Fubon and Chong Hing processed transactions tied to a US checking account held by Liem.
Moreover, the lawsuit accuses these banks of neglecting important checks equivalent to Anti-Cash Laundering (AML) and Know Your Buyer (KYC) procedures.
Liem’s attorneys argue that these checks would have revealed warning indicators in regards to the account holders, which might forestall the accounts from being created. They declare the banks possible ignored clear proof that the funds had been linked to fraudulent actions.
In the meantime, in Vietnam, the Hanoi Metropolis Police Division uncovered and stopped a $1.17 million crypto rip-off. What was the rip-off about? Learn the complete story.
Having accomplished a Grasp’s diploma in Economics, Politics, and Cultures of the East Asia area, Aaron has written scientific papers analyzing the variations between Western and Collective types of capitalism within the post-World Conflict II period.With near a decade of expertise within the FinTech business, Aaron understands all the greatest points and struggles that crypto fanatics face. He’s a passionate analyst who is anxious with data-driven and fact-based content material, in addition to that which speaks to each Web3 natives and business newcomers.Aaron is the go-to particular person for every thing and something associated to digital currencies. With an enormous ardour for blockchain & Web3 schooling, Aaron strives to rework the area as we all know it, and make it extra approachable to finish novices.Aaron has been quoted by a number of established retailers, and is a printed writer himself. Even throughout his free time, he enjoys researching the market developments, and on the lookout for the following supernova.
