A California resident has filed a lawsuit against three Asian banks, accusing them of negligence in enabling a crypto scam that defrauded him of nearly $1 million.
The plaintiff claims that the banks failed to conduct necessary checks that could have prevented the fraudulent activities associated with a "pig butchering" scam.
The lawsuit alleges that the banks did not perform adequate Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, allowing cybercriminals to exploit the banking system and move funds into difficult-to-trace third-party accounts.
The lawsuit also names four Hong Kong-based entities accused of facilitating the scam.
The lawsuit seeks at least $3 million in damages and raises concerns about the effectiveness of current regulatory frameworks in protecting investors.
The outcome of this case could influence future policies and practices in the banking and cryptocurrency sectors.