A Texas resident has filed a lawsuit against Citibank, claiming the bank's negligence led to a loss of $20 million due to a romance scam.
$20 Million Lost: Lawsuit Against Citibank
Michael Zidell, a Texas man, claims he lost $20 million in a scam involving NFTs. The alleged scammer, 'Carolyn Parker', used Facebook for fraudulent communication. Zidell claims Citibank processed nearly $4 million in suspicious transactions, with funds funneled through multiple bank accounts, raising concerns over the bank's monitoring processes.
> 'Citibank turned a blind eye to its statutory duties and obligations when it allowed [the victim] to deposit millions of dollars to scammers who have accounts at the bank.' — Plaintiff’s legal filing, June 2025.
Alleged $4 Million in Suspicious Transactions through Citibank
Approximately $4 million of the total loss passed through Citibank accounts. The lawsuit suggests these transactions should have triggered suspicion under anti-money laundering protocols. Allegations against Citibank imply that financial institutions may face increased scrutiny and pressure to enhance fraud prevention. No official statements were made as of June 26, 2025.
Romance Scam Losses Reached $9.9 Billion in 2024
Romance scams linked to cryptocurrency have seen significant losses, with $9.9 billion tallied in 2024 alone. This incident mirrors broader trends in banking-related vulnerabilities. Given current legal and regulatory responses, financial institutions may need to leverage past cases, as extensive asset seizures have previously been conducted to counter such scams. The growing danger and sophistication of pig butchering scams has been highlighted, emphasizing collaboration with large financial institutions for effective asset tracing and seizure.
The lawsuit against Citibank reflects growing concerns surrounding the recognition of scams in the banking sector, potentially prompting improvements in protective measures.
