Bitcoinist 2025-01-04 08:30:23

California Man Sues Three Asian Banks Over $1 Million Crypto Fraud Loss – Who’s to Blame?

A California man, Ken Liem, has taken legal action against three prominent Asian-based banks—Fubon Bank, Chong Hing Bank, and DBS Bank—for allegedly facilitating a $1 million cryptocurrency scam. The lawsuit , filed in a California district court on December 31, 2024, claims that these banks failed to meet fundamental financial compliance requirements, including Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which might have prevented the fraud. Allegations Of Compliance Failures And Financial Oversight The lawsuit traces the scam’s origins back to June 2023, when Liem was approached on LinkedIn with what seemed to be a legitimate cryptocurrency investment opportunity. Over the following months, Liem transferred significant funds into accounts held at the three banks. These funds were subsequently moved to third-party accounts, allegedly controlled by the scammers. Liem’s legal team asserts that basic compliance checks could have revealed irregularities in these accounts, potentially flagging them as suspicious before significant damage occurred . Liem’s attorneys also argue that the banks involved neglected essential KYC and AML measures, which are standard industry practices designed to prevent financial fraud. They claim that even a basic review of the accounts would have revealed inconsistencies, including a lack of verifiable evidence supporting the legitimacy of the account holders’ business activities . The lawsuit states that the banks likely overlooked clear warning signs and, in doing so, played an indirect role in facilitating the scam. Additionally, the suit accuses the banks of violating the US Bank Secrecy Act (BSA), which mandates financial institutions to maintain records of transactions and report any suspicious activities to the Financial Crimes Enforcement Network (FinCEN). Given that DBS Bank operates a branch in California and the transactions from Fubon and Chong Hing were routed through Liem’s Wells Fargo account, the lawsuit argues that these banks fall under US regulatory jurisdiction . This connection forms the basis of the claim that the banks had a legal obligation to act on the suspicious nature of these transactions. Legal Implications And The Growing Threat of Crypto Scams The lawsuit also highlights the involvement of Hong Kong-based business entities —Richou Trade, FFQI Trade, Xibing, and Weidel—that allegedly funneled Liem’s funds to third-party accounts. These entities are accused of being intermediaries in the scam, serving as channels for laundering the stolen funds. Notably, the case highlights the persistent vulnerabilities in the global financial system, particularly in the context of cross-border cryptocurrency fraud schemes. It raises questions about the responsibilities of banking institutions in preventing such scams and ensuring compliance with international financial regulations. If the lawsuit progresses , it could set a precedent for holding banks accountable for failing to flag suspicious activities in crypto-related transactions. Featured image created with DALL-E, Chart From TradingView

La maggior parte ha letto le notizie

DePIN Altcoin Outpaces Crypto Market and Skyr...
2025-04-27
SUI Primed For Market Correction – Analyst Se...
2025-04-27
XRP ETF Launches in Brazil, Securing Regulate...
2025-04-26
Semler Scientific Amplifies Bitcoin Investmen...
2025-04-26
Hashdex Unlocks World’s First Spot XRP ETF On...
2025-04-26
Bitcoin Coinbase Premium Gap Remains In Posit...
2025-04-26
Can $750 Grow Into $1.5 Million? XRP, SOLANA,...
2025-04-26
Biopharma Firm Merges With Z Squared to Form...
2025-04-26

https://www.digistore24.com/redir/325658/ceobig/

Notizie correlate

2015 Whale Strikes Again: 500 More Bitcoin Moved A...
27 Apr 2025
MAGACOINFINANCE.COM, XRP, and BITCOIN Could Target...
27 Apr 2025
Promising Signs for WIF: Is the $1 Target Within R...
27 Apr 2025
Peter Schiff Critiques Trump’s Tariff Strategy and...
27 Apr 2025
dogwifhat to $1? Why FOMO could be WIF’s big trigg...
27 Apr 2025
MAGACOINFINANCE.COM, XRP, SOLANA, and BITCOIN Are...
27 Apr 2025

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta