Key Takeaways:
- Citibank is being sued for negligence after allegedly allowing $4 million in suspicious transfers tied to a romance scam.
- The victim, Michael Zidell, lost $20 million after being lured into a fake NFT investment scheme by a fraudster he met on Facebook.
- Romance and pig butchering scams are surging, with billions lost globally as scammers exploit emotional connections for financial gain.
Citibank is facing a high-stakes legal battle after a man claimed the bank enabled scammers to steal $20 million in an elaborate crypto romance scam. The plaintiff, Michael Zidell, filed the lawsuit in a Manhattan federal court, alleging Citibank ignored red flags and failed to protect him from a fraudulent scheme tied to a fake romantic relationship.
Victim Claims Romance Led to $20M in Fake NFT Investments
According to the complaint, Zidell was approached in early 2023 on Facebook by a woman using the name “Carolyn Parker.” Claiming to be a successful business owner, Parker developed a seemingly romantic relationship with Zidell and encouraged him to invest in non-fungible tokens (NFTs). She directed him to a trading platform called OpenrarityPro, which he later discovered was fraudulent.
Over the span of a few months, Zidell transferred more than $20 million across 43 transactions to various bank accounts supposedly linked to the platform. He said he was told the funds were split among multiple banks due to “high customer demand.” By April, the OpenrarityPro website had vanished, along with his funds.
Citibank Accused of Ignoring Red Flags
The lawsuit claims Citibank processed 12 of Zidell’s transfers—amounting to nearly $4 million—to a company called Guju Inc. Zidell alleges that the nature of these transactions, particularly the “large, round numbers” and rapid movement of funds between trusts and personal accounts, should have triggered a financial investigation under anti-money laundering (AML) laws.
“Citibank failed to implement adequate security measures,” the lawsuit states, asserting the bank neglected its duty to monitor suspicious activity. The complaint accuses the institution of aiding and abetting the scam and alleges negligence in its handling of the transactions.
Romance Scams and Pig Butchering on the Rise
So-called “pig butchering” scams—where victims are emotionally manipulated into sending money—are on the rise. In 2024 alone, an estimated $9.9 billion was lost to various crypto scams, according to Chainalysis. Security firm Cyvers reported that over $5.5 billion was stolen in romance-related frauds last year, highlighting the growing danger of these digital swindles.
U.S. authorities have increased crackdowns, recently seizing $225 million linked to such scams in the largest crypto seizure in Secret Service history.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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