ChainCatcher message, a resident of California has sued three Asia-based banks, accusing them of failing to perform basic checks, resulting in his loss of nearly $1 million in a 'pig butchering' cryptocurrency scam.

According to a lawsuit filed on December 31, 2024, Ken Liem's lawyers claim that their client was contacted in June 2023 through LinkedIn about a cryptocurrency investment opportunity and was persuaded to transfer funds to the scammers. The funds were subsequently deposited into the three Asian banks and ultimately transferred to a third-party account.

The lawyers accuse these banks of failing to perform compliance checks such as 'Know Your Customer' (KYC) and anti-money laundering, failing to identify the fraudulent activities, and thereby allowing the scammers to open accounts and carry out the fraud.