Crypto Scam Alert: Asian Banks Sued for $1 Million Loss

Imagine being wooed by a charming stranger on LinkedIn, only to find yourself on the hook for nearly $1 million in a cryptocurrency scam. Sounds like a nightmare, right? Unfortunately, this is the harsh reality for Ken Liem, a California resident who’s now taking three Asian banks to court for allegedly failing to protect him from a sophisticated “pig butchering” scam.

What’s a Pig Butchering Scam?

These scams involve manipulating victims by pretending to be a romantic interest or trusted connection. The scammers gain their trust, then convince them to invest in fake cryptocurrency schemes. It’s a clever tactic that’s been used to swindle millions from unsuspecting investors.

The Lawsuit: A Failure to Protect

Liem’s lawsuit targets Hong Kong-based Fubon Bank Limited and Chong Hing Bank Limited, as well as Singapore-based DBS Bank. He claims that these banks failed to perform basic Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which could have flagged suspicious activities and prevented the fraud.

Here’s what happened:

* Liem was approached on LinkedIn in June 2023 with an enticing cryptocurrency investment opportunity. * Over several months, he was persuaded to transfer nearly $1 million to accounts allegedly held at the three banks. * The banks allegedly failed to monitor and report suspicious transactions, violating the U.S. Bank Secrecy Act.

The Consequences: A $3 Million Lawsuit

Liem is seeking a minimum of $3 million in damages, holding both the banks and four Hong Kong-based entities accountable for the losses incurred. The entities, Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited, are accused of opening accounts on Liem’s behalf and illegally redirecting the funds to third-party accounts.

The Bigger Picture: Pig Butchering Scams on the Rise

Pig butchering scams are a growing threat in the crypto sector. A recent Cyvers report claims that over $3.6 billion was lost to such schemes in 2024. While most victims are left with empty wallets and little hope for justice, some are fighting back through the courts.

A Call to Action: Stay Vigilant

As the crypto landscape continues to evolve, it’s essential to stay vigilant and protect yourself from scams. Remember, if an investment opportunity seems too good to be true, it probably is. Always do your research, and never invest more than you can afford to lose.

What do you think? Have you or someone you know fallen victim to a pig butchering scam? Share your story in the comments below.

Source: Crypto.news

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