Crypto Romance Scam Victim Files Lawsuits Suggesting Possible Bank Negligence Involving Bitcoin Transfers

Key Points

1. Michael Zidell sued East West Bank and Cathay Bank over a romance scam involving NFTs, resulting in losses exceeding $20 million.

2. The scam began when Zidell was contacted by "Carolyn Parker" on Facebook, leading to investments in a fraudulent platform that disappeared by April 2023.

3. The lawsuits accuse the banks of negligence for failing to report or investigate suspicious transactions, labeling them as "aiders and abettors" of the fraud.

4. The case includes elder abuse claims under California law, though Zidell's age is not explicitly stated.

5. The lawsuits may set a precedent for holding banks accountable in crypto-related fraud cases and highlight the need for advanced compliance frameworks.