A California man, Ken Liem, has filed a lawsuit towards three banks primarily based in Asia, accusing them of enabling crypto fraudsters to steal practically $1 million.
The authorized motion, submitted to a California district court docket on December 31, 2024, claims the banks did not take fundamental steps to forestall the alleged rip-off.
In line with the lawsuit, Liem was approached on LinkedIn in June 2023 by scammers selling a cryptocurrency funding alternative. Liem was satisfied they might make investments on his behalf, so he transferred the funds over the next months.
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Nonetheless, the cash was as a substitute 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 keep up transaction information and report suspicious exercise.
In addition they argue that DBS is topic to this regulation because 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 legal professionals argue that these checks would have revealed warning indicators in regards to the account holders, which may forestall the accounts from being created. They declare the banks possible ignored clear proof that the funds have 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 fans face. He’s a passionate analyst who is worried 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 all the things and something associated to digital currencies. With an enormous ardour for blockchain & Web3 training, Aaron strives to remodel the house as we all know it, and make it extra approachable to finish inexperienced persons.Aaron has been quoted by a number of established shops, and is a printed writer himself. Even throughout his free time, he enjoys researching the market traits, and in search of the following supernova.
