Michael Zidell has filed a lawsuit against Citibank, alleging negligence that led to the loss of $20 million through a fraudulent scheme.
Accusations Against Citibank
Zidell has filed a lawsuit in a Manhattan federal court, accusing the bank of ignoring suspicious transactions that enabled scammers to steal a significant amount. In his complaint, Zidell claims Citibank 'turned a blind eye' to transactions linked to fraudulent schemes.
The Scam and Its Consequences
The scam, known as 'pig butchering,' began with a fake profile under the name Carolyn Parker on Facebook. After establishing friendly and then romantic relations, Parker convinced Zidell to invest in tokens, claiming he profited millions. Zidell transferred funds across various accounts related to the fraud platform, totaling over $20 million. By late April, the platform's website disappeared along with Zidell's investments.
Global Impact of Scams
Romance scams have become a significant threat, with over $5.5 billion lost globally in 2024 alone, according to security firm Cyvers. Crypto scams are estimated to have stolen nearly $9.9 billion so far this year, potentially rising to $12.4 billion. Recently, U.S. authorities seized $225 million linked to pig butchering in the largest crypto seizure by the Secret Service to date.
Zidell's case against Citibank highlights the growing challenges banks face in detecting and preventing complex fraud schemes related to cryptocurrencies.
