Ken Liem, a California resident, has filed a lawsuit against three major Asian banks—Fubon Bank, Chong Hing Bank, and DBS Bank—alleging their involvement in facilitating a $1 million cryptocurrency scam.

The lawsuit claims that these banks failed to adhere to essential financial compliance protocols, including Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which could have potentially thwarted the fraudulent activities.

Liem's legal team argues that basic compliance checks could have identified irregularities in the accounts, possibly flagging them as suspicious before significant financial damage occurred.

The lawsuit also accuses the banks of violating the US Bank Secrecy Act (BSA) and argues that they had a legal obligation to act on the suspicious nature of the transactions.

The lawsuit sheds light on the involvement of several Hong Kong-based business entities that allegedly acted as intermediaries in the scam.

These entities are accused of funneling Liem's funds to third-party accounts, effectively serving as channels for laundering the stolen money.

The case highlights the growing threat of cryptocurrency scams and the potential repercussions for financial institutions that do not adequately protect their customers.

It may prompt regulatory bodies to reevaluate existing compliance frameworks and consider more stringent measures to safeguard against financial fraud.