Michael Zidell, a Manhattan resident, has filed a federal lawsuit against Citibank, claiming the bank failed to prevent or investigate a massive cryptocurrency romance scam that cost him over $20 million.
Filed in Manhattan Federal Court, the complaint alleges that Citibank “turned a blind eye” to multiple red flags associated with the fraudulent transactions.
Zidell claims that over a series of 43 transfers, he was manipulated into depositing funds into various bank accounts.
The funds included nearly $4 million sent to an entity known as Guju Inc., which held an account with Citibank.
The lawsuit centers on Citibank’s alleged failure to uphold anti-money laundering (AML) obligations and monitor suspicious account activity, despite numerous glaring signs of fraud.
Scam Originated From Online Romance and NFT Investment Pitch
According to the complaint, the scheme began in early 2023 when Zidell was approached on Facebook by someone identifying as “Carolyn Parker,” who claimed to be a successful businesswoman.
Zidell says their online interactions grew from a friendly rapport into a perceived romantic relationship.
Within weeks, Parker encouraged him to invest in NFTs (non-fungible tokens), claiming she had made millions through a platform called OpenrarityPro.
Trusting her guidance, Zidell began transferring large amounts of money to bank accounts provided by the so-called platform.
The lawsuit emphasizes that these were often large, round-numbered transfers, supposedly to accommodate the high volume of deposits on the trading platform.
Also Read: Philippine Company Sanctioned by US Treasury Over $200 Million Crypto-Based ‘Pig Butchering’ Scams
Alleged Platform Disappears, Leaving Victim Empty-Handed
Over the course of several months, Zidell claims to have made 43 separate transfers amounting to more than $20 million.
However, by April 2023, the OpenrarityPro website had vanished without notice. Zidell was unable to recover any funds, and his communication with Parker ceased.
The lawsuit argues that Citibank should have flagged and intervened in the suspicious activity, particularly the 12 transfers totaling approximately $4 million that were routed to Guju Inc.
The complaint highlights such transactions, especially involving trusts and large sums in and out of personal accounts need scrutiny.
Typically this is subject to scrutiny under federal AML regulations, which Citibank allegedly failed to uphold.
Also Read: YouTuber ‘mrwn’ Exposes Philippines Call Centre Crypto Scam Raking In $800K Annually
Citibank Accused of Negligence, Aiding and Abetting the Fraud
Zidell’s legal team accuses Citibank of not only negligence but of aiding and abetting the scam by failing to implement proper monitoring systems.
The suit argues that the bank neglected its duty to detect suspicious activity despite numerous red flags, such as high-volume transfers from individual trusts and repeated, round-number transactions.
According to the filing, these patterns were “clearly suspicious” and should have triggered internal investigations.
The lawsuit states, “[Citibank] failed to implement adequate securities measures, failed to detect clearly suspicious transactions, and failed to monitor the accounts.”
Zidell is seeking compensation and damages, asserting that had Citibank fulfilled its legal obligations, the scam could have been intercepted.
Wider Pattern Emerges as Crypto Romance Scams Escalate Globally
Zidell’s case is the latest in a growing trend of so-called “pig butchering” scams, elaborate romance scams targeting unsuspecting individuals with fake investment opportunities.
Similar schemes have been reported worldwide.
In a separate ruling, crypto platform Debiex was ordered by a U.S. federal judge to pay $2.5 million after being found guilty of orchestrating a romance scam involving fake relationships and investment fraud.
Meanwhile, Nigerian authorities arrested 792 people in a major raid on a scam hub, and Australian police cracked down on an international ring targeting men via dating apps.
These incidents highlight the urgent need for stricter banking oversight and public awareness as crypto-related romance fraud continues to rise globally.
Also Read: Spanish Police Dismantle €30 Million Crypto Pyramid Scam That Deceived Over 3,600 Investors