California man sues 3 Asian banks over $1 million pork scam
A California resident is suing three Asian-based banks for allegedly failing to perform basic checks that could have prevented crypto fraudsters from defrauding him of nearly $1 million.
In a lawsuit filed in California District Court on December 31, 2024, Ken Lim's attorneys said their client was the victim of a pork scam after being contacted on LinkedIn about a cryptocurrency investment opportunity in June 2023.
Lim's lawyers were pressured to transfer money to the suspected crypto fraudsters over several months under the guise that their clients would invest on his behalf.
The lawyers said the money was deposited in Hong Kong banks Fubon Bank Ltd, Chong Hing Bank Ltd and Singapore-based DBS Bank Ltd, and then the fraudsters sent it to other third-party accounts.
The lawyers accuse the banks of failing to adequately carry out know-your-customer (KYC), anti-money laundering and other level checks that could scare account holders away from opening accounts.
Three banks are being accused of failing to do basic checks to prevent crypto fraudsters from opening accounts. Source: PacerMonitor
The lawyers said the banks may have known there was a “high probability” that the account owner “intended to defraud the victims,” adding that a simple review “reveals a complete lack of credible evidence that their business was legitimate or legal.”
“It appears that the bank defendants have their eyes on the illegal proceeds that they have secured and are keeping in their accounts from the United States to various Asian entities,” Lim's lawyers said in the lawsuit.
“In turn, he has helped unmask hundreds of thousands of dollars, if not millions, of bankrolled pork scams.
The lawsuit also violates the U.S. Act, which requires financial institutions to keep detailed records of financial transactions and report suspicious activity to the U.S. Department of the Treasury's Financial Crimes Enforcement Network. Sues the banks for not complying with the Bank Secrecy Act.
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Lim's lawyers argue that the banks are subject to the law because DBS maintains a branch in California and Fubon and Chong Hing conducted the transaction through his bank account at US Bank Wells Fargo.
The indictment also accused the Hong Kong-based businesses that opened the accounts — Richou Trade Limited, FFQI Trade Limited, Xibing Limited and Weidel Limited — of illegally transferring Lim's money to third-party accounts.
They were accused of falsely claiming that funds would be used for cryptocurrency investments. Lim's lawyers are seeking a jury trial and at least $3 million in damages.
Fubon Bank Ltd, Chong Hing Bank Ltd and DBS Bank Ltd did not immediately respond to a request for comment.
Richou Trade Limited, FFQI Trade Limited, Xibing Limited and Weidel Limited could not be reached for comment at the time of publication.
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