A California man, Ken Liem, has filed a lawsuit in opposition to three banks primarily based 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 fundamental steps to stop the alleged rip-off.
In accordance 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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Nevertheless, 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 keep up transaction data and report suspicious exercise.
In addition they argue that DBS is topic to this regulation attributable to 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 reminiscent of Anti-Cash Laundering (AML) and Know Your Buyer (KYC) procedures.
Liem’s attorneys argue that these checks would have revealed warning indicators concerning the account holders, which may stop 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 total 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 Battle II period.With near a decade of expertise within the FinTech trade, Aaron understands all the largest 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 trade newcomers.Aaron is the go-to particular person for every part and something associated to digital currencies. With an enormous ardour for blockchain & Web3 training, Aaron strives to rework the house as we all know it, and make it extra approachable to finish newbies.Aaron has been quoted by a number of established retailers, and is a broadcast writer himself. Even throughout his free time, he enjoys researching the market traits, and searching for the following supernova.
