A recent lawsuit filed against Citibank in New York highlights the bank's alleged negligence, resulting in a client losing a substantial amount of $20 million due to a crypto scam.
Overview of the Lawsuit Against Citibank
Plaintiff Michael Zidell filed the lawsuit on June 24, seeking compensatory damages and legal costs. He claims the bank failed to detect and act on suspicious wire transfers related to the fraud scheme.
Details of the Fraudulent Scheme
Zidell was targeted in a scheme known as 'pig butchering', where scammers maintain fake online relationships with victims to entice them into investments. His first contact with the scammer personified as Carolyn Parker began in January 2023 on Facebook, culminating in fund transfers through the OpenrarityPro.com platform.
Concerns Regarding Crypto Scams
Pig butchering scams have raised significant alarms among federal authorities and crypto industry insiders. The FBI's 2024 report indicates significant losses attributed to such scams, particularly affecting senior citizens over 60 years old.
The case against Citibank raises critical issues regarding banks' responsibilities towards their clients and the need for increased awareness of fraudulent schemes in the crypto industry.
