- Ken Liem lost nearly $1M in a “pig butchering” crypto scam initiated via LinkedIn.
- The lawsuit accuses three Asian banks of failing to perform basic KYC and AML checks.
A California resident, Ken Liem, has filed a lawsuit against three Asian banks for failing to prevent a cryptocurrency scam that cost him nearly $1 million. The legal filing in a California district court on December 31, 2024, alleges negligence and lack of due diligence by the banks.
Liem became a victim of a “pig butchering” scam after being approached on LinkedIn in June 2023. Scammers posed as representatives of a promising cryptocurrency investment opportunity. Over several months, they convinced Liem to transfer significant funds, claiming they would invest the money on his behalf.
The funds were deposited into accounts at Fubon Bank Limited and Chong Hing Bank Limited in Hong Kong and DBS Bank Limited in Singapore. The scammers then transferred the funds to third-party accounts, making recovery difficult. According to Liem’s legal team, the banks failed to implement essential Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which could have flagged suspicious activity.
Hong Kong Entities in Alleged Crypto Fraud Scheme
Liem’s attorneys argue that the banks likely knew the account holders’ activities were illegitimate. They claim that a basic review of the accounts would have revealed red flags. The lawsuit also accuses the banks of violating the U.S. Bank Secrecy Act.
The lawsuit also names four Hong Kong-based entities: Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited. These entities allegedly opened accounts to divert Liem’s funds to third parties while falsely claiming the money would be used for cryptocurrency investments. Liem is seeking a minimum of $3 million in damages and a jury trial. The lawsuit highlights the ongoing risks of crypto scams and the responsibilities of financial institutions to prevent fraud.
Pig butchering scams remain a significant threat. In 2024, such scams accounted for billions in losses, as reported by Cyvers. Victims like Liem are turning to legal actions to seek justice and hold institutions accountable.
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