Citibank Sued Over Alleged Role in $20 Million Crypto Romance Scam

Citibank is facing legal action from a man who says he lost $20 million in a cryptocurrency romance scam , accusing the banking giant of turning a blind eye to suspicious activity. In a lawsuit filed Tuesday in a Manhattan federal court, plaintiff Michael Zidell alleged that Citibank failed in its duty to detect and stop red flags as he unknowingly wired millions of dollars to scammers, including nearly $4 million through Citibank accounts. Victim Claims Citibank Overlooked Scam Warnings According to the complaint, Zidell fell victim to a sophisticated scheme known as “pig butchering,” in which fraudsters create fake romantic connections to lure victims into fraudulent crypto investments. Zidell said he was contacted in early 2023 via Facebook by a woman calling herself Carolyn Parker, who claimed to be a successful business owner. As their online relationship deepened, she encouraged him to invest in non-fungible tokens (NFTs), claiming she had made millions through a specific trading platform. Trusting the scheme, Zidell transferred funds to accounts provided by the platform. Over several months, he made 43 transactions totaling over $20 million to various banks. By April, the platform’s website had vanished — along with his funds. Bank Negligence at the Heart of Lawsuit The lawsuit highlights 12 specific transfers totaling $4 million that Zidell says Citibank processed to a company named Guju Inc. He claims the bank ignored multiple red flags in Guju’s accounts, including large, repetitive fund movements involving trusts and individual accounts, which should have triggered anti-money laundering checks. “Citibank failed to implement sufficient security protocols and allowed clearly suspicious transactions to proceed,” the complaint reads. Zidell accuses the bank of aiding and abetting fraud, and claims it breached its legal duty to monitor and investigate such activity. The case brings renewed attention to the scale of romance-based crypto scams . In 2023 alone, such scams reportedly siphoned over $5.5 billion from victims. Analytics firm Chainalysis has projected that total crypto-related scams may reach $12.4 billion in 2024. Earlier this month, U.S. authorities seized $225 million linked to pig butchering scams — the largest crypto seizure in Secret Service history. The post Citibank Sued Over Alleged Role in $20 Million Crypto Romance Scam appeared first on TheCoinrise.com .