California man sues 3 Asia banks over $1M pig butchering crypto-fraud scam

California Resident Alleges Banks Failed to Prevent Pig Butchering Scam

A California man has filed a lawsuit against three Asia-based banks, accusing them of negligence for failing to implement adequate safeguards that could have prevented scammers from defrauding him of nearly $1 million through a pig butchering crypto scam.

The lawsuit, filed in a California district court on Dec. 31, 2024, alleges that Ken Liem was targeted in June 2023 via LinkedIn by fraudsters posing as cryptocurrency investment advisors.

Fraudulent Transfers and Allegations Against Banks

According to Liem’s attorneys, the scammers persuaded him to transfer funds over several months, promising lucrative crypto investments. The funds were sent to accounts held at Hong Kong’s Fubon Bank and Chong Hing Bank and Singapore’s DBS Bank before being funneled into third-party accounts.

The lawsuit claims these banks failed to adhere to standard compliance protocols, including:

Know Your Customer (KYC) checks.
Anti-Money Laundering (AML) procedures.
Reporting suspicious transactions under the U.S. Bank Secrecy Act (BSA).

Liem’s legal team argues that a basic review of the accounts would have revealed insufficient evidence of lawful business activity, suggesting the banks may have knowingly ignored red flags related to fraudulent activity.

“The banking defendants appear to have turned a blind eye to illicit proceeds moving from the United States into suspicious Asian accounts they managed, thereby facilitating the scam,” the lawsuit stated.

Failure to Comply with U.S. Banking Laws

The lawsuit also accuses the banks of violating the U.S. Bank Secrecy Act, which mandates financial institutions to monitor and report suspicious activities to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

Liem’s attorneys emphasized that the banks’ connection to the U.S. banking system places them under U.S. jurisdiction. DBS Bank has a branch in California, while Fubon and Chong Hing allegedly processed transactions through Wells Fargo in the U.S.

Additional Defendants Named in the Lawsuit

The lawsuit further names several Hong Kong-based entities—Richou Trade, FFQI Trade, Xibing, and Weidel—for unlawfully diverting Liem’s funds. These entities are accused of misrepresenting the funds’ intended use for cryptocurrency investments.

Seeking Damages and Legal Action

Liem’s attorneys are demanding a jury trial and a minimum of $3 million in damages to compensate for the losses and punitive penalties against the defendants.

No Response from Banks or Business Entities

At the time of publication, Fubon Bank, Chong Hing Bank, and DBS Bank had not responded to requests for comment. Similarly, the named business entities could not be reached.