Michael Zidell, claiming to be a victim of cryptocurrency fraud, has filed a second lawsuit against East West Bank and Cathay Bank, asserting that they failed to fulfill their oversight duties.
Nature of the Lawsuit Against Banks
Zidell has filed a lawsuit in a California federal court accusing both banks of turning a blind eye to their statutory obligations. He claims he sent approximately $7 million to the alleged scammers' accounts at East West Bank and over $9.7 million to accounts at Cathay Bank.
Fraudulent NFT Investments
Zidell describes how in early 2023 he developed a romantic relationship with a woman named 'Carolyn Parker,' who persuaded him to invest in non-fungible tokens (NFTs). Overall, he sent 43 transfers totaling over $20 million to various bank accounts provided by the platform promising high returns.
Allegations of Inaction from Banks
Zidell argues that the banks failed to fulfil their duties in monitoring suspicious transactions, as large sums should have raised red flags. He is also seeking to hold East West Bank and Cathay Bank liable for aiding fraud, accusing them of negligence and facilitating the crime by allowing their services to be used.
Zidell's lawsuit against East West Bank and Cathay Bank highlights the challenges customers face with financial institutions regarding their lack of oversight in the face of suspicious transactions and fraudulent schemes in the cryptocurrency space.
