Crypto romance scam victim sues Citibank, East West, and Cathay over $20M loss
2025-07-04 09:59:39
Main Idea
A victim of a $20 million romance scam involving cryptocurrency has sued Citibank, East West Bank, and Cathay Bank, alleging they failed to detect red flags in suspicious transactions.
Key Points
1. The victim wired nearly $20 million across 43 transfers to accounts at Citibank, East West Bank, and Cathay Bank, directed by individuals behind a fake crypto scheme.
2. The lawsuit claims the banks ignored red flags, such as discrepancies in account activity and large, frequent transfers, violating Know Your Customer and Anti-Money Laundering regulations.
3. The scam involved a fake identity named Carolyn Parker, who encouraged the victim to invest in NFTs through provided bank accounts before disappearing with the funds.
4. The victim has filed lawsuits in New York and California, requesting a jury trial and seeking compensatory damages.
Description
A victim of a multi-million dollar Romance scam has sued three US banks, accusing them of negligence and enabling the fraud. Plaintiff Michael Zidell, who reportedly lost roughly $20 million to a fraudulent scheme, claims he transferred millions across accounts held at Citibank, East West Bank, and Cathay Bank without the institutions detecting or acting upon red flags. According to the lawsuits, Zidell made 12 transfers totalling nearly $4 million to accounts at Citibank, 18 transfers totalling...
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