A California man, Ken Liem, has filed a lawsuit against three prominent Asian banks, accusing them of negligence that allegedly allowed scammers to defraud him of nearly $1 million in a sophisticated crypto scheme known as a "pig butchering" scam.

According to the lawsuit, filed on Dec. 31, 2024, in a California district court, Liem claims he was duped after being approached on LinkedIn in mid-2023 with a cryptocurrency investment opportunity. Over several months, he transferred substantial funds to accounts at Hong Kong's Fubon Bank and Chong Hing Bank, as well as Singapore's DBS Bank, believing they were being invested on his behalf. The funds were later funneled into third-party accounts, according to his legal team.

Liem’s attorneys accuse the banks of failing to perform basic Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which they argue could have flagged suspicious activity. They allege that the banks either overlooked or ignored red flags, enabling scammers to open accounts used to launder illicit funds.

The lawsuit further alleges that the banks violated the U.S. Bank Secrecy Act, citing DBS Bank’s California branch and the other banks' processing of transactions through U.S.-based Wells Fargo. The complaint also names Hong Kong-based businesses, including Richou Trade and Xibing, alleging they unlawfully redirected funds to fraudulent accounts.

Liem is seeking a jury trial and at least $3 million in damages. The banks and entities named in the suit have not provided comments at the time of publication.

This lawsuit underscores growing concerns about financial institutions’ role in crypto-related fraud and their accountability in preventing such scams.