A victim of cryptocurrency fraud has filed lawsuits against East West Bank and Cathay Bank in a landmark case alleging institutional negligence.
Michael Zidell accuses both banks of failing to investigate suspicious transactions that facilitated a romance scam resulting in over $20 million in losses.
The scheme began when Zidell was contacted by an individual posing as “Carolyn Parker” through Facebook, who persuaded him to invest in a fraudulent NFT platform that vanished by April 2023.
Legal complaints describe the banks as “aiders and abettors” of the fraud due to their alleged failure to monitor, report, or halt questionable wire activities despite clear warning signs.
Lawsuits additionally invoke elder abuse statutes under California law, though Zidell’s specific age remains undisclosed in court documents.
This litigation could establish precedent for banking sector accountability in cryptocurrency fraud cases and underscores demands for enhanced compliance protocols regarding suspicious digital asset transactions.