As the crypto sector records a significant drop in hacking-related losses in December 2024, a fraud case shakes the Asian banking world. A Californian investor, victim of a million-dollar crypto scam, is suing three major banks for negligence in their verification procedures.
One million dollars embezzled, Asian banks in turmoil
The Asian banking sector is facing serious accusations at the start of this year. California resident, Ken Liem, took legal action against three major banks, including Hong Kong Fubon Bank Limited, Chong Hing Bank Limited and DBS Bank Limited, for their alleged negligence in a major crypto scam.
The charges relate to their failure to comply with KYC verification procedures (Know Your Customer) verification procedures and anti-money laundering standards, enabling fraudsters to open accounts used in a million-dollar fraud.
The case reveals a sophisticated scam technique, initiated on LinkedIn, where the victim was manipulated into transferring funds under the guise of crypto investments. The lawyers from Liem are claiming damages of $3 million, arguing that the banks turned a blind eye to dubious transactions passing through their establishments.
Historic drop in crypto pirates in December
Alongside this, encouraging news is emerging from the sector. According to data from CertiK, a company specializing in blockchain security, losses from crypto hacks and scams have reached their lowest point ever level in December 2024, with only $28.6 million in losses recorded. This drop contrasts significantly with previous months, where losses amounted to 63.8 million in November and 115.8 million in October.
PeckShield confirms this positive trend, noting a 71% reduction in losses between November and December. Despite some notable incidents, such as the operation of GemPad for $2.1 million, this drastic reduction in cyberattacks suggests an evolution in security.
These contradictory developments are shaping the new face of security in the crypto ecosystem. While the spectacular drop in hacks at the end of 2024 testifies to the sector’s growing maturity, the Liem affair reveals persistent flaws at the interface between traditional finance and crypto, where vigilance remains the order of the day.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
