- A pig butchering scam victim has sued three banks after losing nearly $1 million
- The victim filed a lawsuit in a California district court
- The victim believes that the banks failed to conduct basic checks when authorizing transactions
A California resident has sued three banks after losing nearly $1 million in a pig butchering scam claiming the banks had the power to prevent the loss. The scam victim, Ken Liem, filed a lawsuit in a California district court with details showing that he first came into contact with the malicious actors in mid-2023. The victim’s funds first went into accounts held in Chong Hing Bank Limited, Fubon Bank Limited, and DBS Bank Limited before being transferred into other accounts, something that the victim believes could have been prevented if the banks employed stringent KYC and anti-money laundering rules.
Did the Banks Know They Were Scammers?
According to court documents, the scammers pitched an investment opportunity promising to help Liem grow his money but needed him to first transfer the funds to them. Liem’s lawyers claim that the financial institutions could have investigated the scammers’ backgrounds before allowing them to open accounts.
They added that the banks may have allowed them to open accounts despite suspecting they were fraudsters.
According to Liem’s legal team, the banks ignored the fact that the funds were being deposited from U.S. banks into a string of Asian banks. They also noted that the three banks are subject to U.S. banking laws because some of them have branches in the U.S.
The Victim Wants $3 Million
Liem is seeking compensation of not less than $3 million in damages. The banks and other accused parties are yet to comment on the lawsuit. Liem’s move to sue financial institutions that serve the scammers is rare in the crypto space.
With the burden of showing how the banks are part of the scamming circle on Liem, it’s to be seen whether he’ll succeed in convincing the court to rule in his favor.
