California residents sue three Asian banks, claiming their failure to conduct necessary checks led to cryptocurrency fraud

ChainCatcher news, a California resident has sued three Asia-based banks, accusing them of failing to perform basic checks that led to his loss of nearly $1 million in a cryptocurrency scam.

According to a complaint filed on December 31, 2024, Ken Liem's attorney claims that his client was contacted about a cryptocurrency investment opportunity via LinkedIn in June 2023 and was persuaded to transfer funds to the scammers. The funds were then deposited into the three Asian banks and ultimately transferred to a third-party account.

The attorney alleges that these banks failed to conduct compliance checks such as "know your customer" (KYC) and anti-money laundering, failing to identify the fraudulent activity, thereby allowing the scammers to open accounts and carry out the scam.