Ken Liem, a California resident, has filed a lawsuit against three major banks, accusing them of negligence in enabling a cryptocurrency investment scam. Liem claims he was defrauded of $986,000 after being targeted on LinkedIn in June 2023 by a scammer promoting crypto investment opportunities. Over six months, Liem wired substantial funds through Wells Fargo to accounts held by Hong Kong-based entities.
Liem’s ordeal escalated when his cryptocurrency account was frozen under false allegations of money laundering. To regain access to his funds, scammers demanded he pay a fake IRS tax—an established tactic used to maximize financial extraction from victims before vanishing.
The lawsuit names three financial institutions as defendants:
- Chong Hing Bank Limited (Hong Kong-based)
- Fubon Bank Limited (Hong Kong-based)
- DBS Bank (Singapore-based, with a Los Angeles branch)
Allegations of Negligence and Non-Compliance
Liem accuses these banks of failing to follow mandatory “Know Your Customer” (KYC) and anti-money laundering (AML) protocols as required by the U.S. Bank Secrecy Act. The lawsuit asserts that the
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