A New York man is taking Citibank to court. Michael Zidell accuses the banking giant of negligence after losing $20 million in a devastating crypto romance scam. His lawsuit, filed June 24th in New York, demands compensation and legal costs. Zidell claims Citibank utterly failed to stop suspicious wire transfers enabling the massive fraud.
A Digital Romance
Everything started innocently enough in January 2023. Carolyn Parker contacted Zidell on Facebook. She claimed to be a California business owner. Their connection deepened over video calls and texts on WeChat. Soon, Zidell believed he was in a genuine romantic relationship. This perception became the scammer’s powerful tool.
Fake Profits and Real Cash
By February 2023, Parker shifted gears. She enthusiastically encouraged Zidell to invest in NFTs. Specifically, she pushed the platform OpenrarityPro.com. Parker boasted of earning millions there herself. She even showed fake account statements as supposed proof. Following this, Zidell began sending money. He transferred funds to accounts specified on the website. These transfers supposedly funded his NFT investments.
Citibank’s Alleged Blind Spot
Zidell executed 43 wire transfers across several banks. Shockingly, twelve went to Citibank. These Citibank transfers totalled nearly $4 million. They landed in accounts held by “Guju Inc”. Alarmingly, the very first Guju Inc. transfer raised red flags. It alone exceeded the entity’s stated annual revenue. Furthermore, it contradicted Guju Inc.’s account documents. Those documents projected monthly wires under $250,000.
The lawsuit alleges Citibank ignored numerous warning signs. Large, round-sum transfers flowed in. These sums were completely inconsistent with Guju Inc.’s declared business activity. Ultimately, Citibank allegedly violated federal law. The bank failed its Know Your Customer (KYC) duties. Similarly, it neglected Anti-Money Laundering (AML) obligations. Despite clear suspicious indicators, Citibank supposedly never investigated Guju Inc.
The Pig Butchering Plague
This cruel scam method has a name: “pig butchering”. Scammers first fatten victims with fake affection. Then, they financially slaughter them. Federal authorities and crypto experts now view it as a major threat. The FBI’s 2024 Internet Crime Report confirmed its devastating impact. Pig butchering ranked among the worst crypto crimes last year. Overall, investment fraud losses hit a staggering $5.8 billion. Sadly, older Americans suffer most severely. Victims aged 60+ lost $2.8 billion to crypto scams alone.
As of now, Michael Zidell fights for accountability. His case spotlights a critical question. Should banks bear more responsibility for spotting fraud?. For now, Zidell seeks justice for his catastrophic $20 million loss. His story serves as a harsh warning in the digital age.
Written By Fazal Ul Vahab C H
