Michael Zidell, a California resident, is suing Citibank, East West Bank, and Cathay Bank, alleging that the banks failed to detect fraud that led to more than $20 million in losses.
Loss of $20 Million and Lawsuits Against Banks
Zidell is expanding his legal battle after filing a lawsuit against Citibank, now also targeting East West Bank and Cathay Bank. He accuses all three banks of aiding scammers due to negligence and failure to identify suspicious activities. Zidell claims that between early 2023 and April of the same year, he was manipulated into transferring millions to accounts controlled by fraudsters.
Romantic Scam Scheme
Zidell asserts that in early 2023, he was contacted on Facebook by a woman named "Carolyn Parker," who claimed to be a successful entrepreneur. After establishing a romantic relationship, she introduced him to a supposedly profitable NFT trading platform where he transferred significant amounts. According to the lawsuit, the entire operation collapsed in April 2023 when the website and Parker vanished simultaneously.
Legal Allegations Against Banks
Zidell's complaints against East West Bank and Cathay Bank mirror claims against Citibank. He accuses these institutions of negligence in failing to halt suspicious transactions. California law defines "elder" as any individual aged 65 and older, and Zidell's legal team argues that banks failed to protect such clients from financial exploitation.
Zidell's case raises important questions about the role of traditional banks in preventing cryptocurrency fraud. If his claims are successful, this could lead to changes in how financial institutions approach compliance and accountability.
