The lawsuit alleges that Hong Kong-based Fubon Bank Limited and Chong Hing Bank Limited and Singapore-based DBS Bank failed to prevent fraud by neglecting basic Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.

In Ken Liem’s ​​petition dated December 31, it is stated that the fraud process started on LinkedIn in June 2023. Liem was tricked by scammers offering an attractive crypto investment opportunity.

The scammers gained Liem’s ​​trust by using a tactic known as “pig feeding.” In this method, victims are deceived into pretending to be a romantic relationship or a reliable connection and directed to fake investment opportunities.

For several months, the fraudsters convinced Liem that his investments would be safely managed. As a result, Liem transferred nearly $1 million of his funds to accounts opened through Fubon Bank, Chong Hing Bank and DBS Bank. However, these funds were diverted to third-party accounts and used illegally for other purposes.

The lawsuit states that the banks in question neglected KYC and AML protocols. Liem’s ​​lawyers argue that if these checks had been carried out, the fraud could have been detected and prevented. It is especially emphasized that suspicious transactions should be reported and documented.

The lawsuit also alleges violations of the U.S. Bank Secrecy Act (BSA). This law establishes the obligations of financial institutions to monitor, document and report suspicious transactions to prevent fraud and money laundering.

The fact that DBS Bank operates in California and other banks carried out transactions through Liem’s ​​US-based Wells Fargo account puts these banks within the scope of US financial regulations.

Liem’s ​​petition also names four Hong Kong-based companies, Richou Trade Limited, FFQI Trade Limited, Xibing Limited and Weidel Limited. It is claimed that these companies opened accounts in the name of Liem and directed the funds to third-party accounts and were an important part of the fraud.

Liem is suing both banks and these companies, demanding a total of $3 million in compensation.

In 2024, “pig feeding” scams have become one of the biggest threats in the crypto industry. According to a report by Cyvers, a total of $3.6 billion was withdrawn from the crypto market through 2024 with this method. In such scams, victims are often left with empty accounts, making the search for justice a very difficult process.

However, some victims are fighting fraudsters by taking legal action. In October 2024, US citizen Hector Gustav Gutierrez filed a similar lawsuit, claiming he lost 33 Bitcoins in a scam organized by a Southeast Asia-based criminal gang.

The lawsuit filed by Ken Liem reveals once again how important it is for financial institutions to strictly implement KYC and AML processes. It is emphasized that effective controls must be carried out to detect and prevent suspicious transactions.

This case can also be considered as an example that gives victims the courage to seek their rights. The increase in financial frauds reveals the need for stricter regulations on banks and financial institutions.

The outcome of Liem’s ​​case could set a precedent for how financial institutions are held accountable in such incidents and how victims are compensated for their losses. The increase in such cases may contribute to creating a more transparent and secure environment in the financial system.