Citibank has become the subject of a lawsuit in a federal court in the United States over involvement in a cryptocurrency scam that led to significant financial losses.
Allegations Against Citibank
The lawsuit was filed by Dallas resident Michael Zidell, who accuses the bank of aiding fraud after losing $20 million to a so-called 'pig butchering' scheme. Zidell claims that Citibank, as a recipient of funds, failed to notice suspicious transactions and did not conduct appropriate monitoring.
The Scam Scheme
Zidell was drawn into the scam through interactions with a woman named Carolyn Parker, who posed as a businesswoman from California. She claimed to have made millions through investments in NFTs via the platform OpenrarityPro, convincing Zidell to transfer funds to multiple bank accounts. Over time, he made 43 wire transfers totaling over $20 million.
Consequences and Victim's Actions
After Zidell was unable to access his funds on the now-inaccessible website, he realized he had fallen victim to a scam and reported the incident to law enforcement. The lawsuit emphasizes that Citibank failed to meet its obligations to monitor suspicious activities and could have prevented the fraud.
The lawsuit against Citibank raises important questions about security and the responsibilities of banks when processing large transactions, particularly in areas related to cryptocurrency.
