Key Takeaways:
- Citibank is being sued for allegedly overlooking red flags in a $20 million crypto romance scam involving multiple suspicious transactions.
- The plaintiff, Michael Zidell, claims the scam, known as a “pig butchering” scheme, involved 43 transfers, including $4 million routed through Citibank accounts.
- The lawsuit asserts Citibank failed to monitor Guju Inc.’s activity, missing signs like large, round-sum transfers linked to fraudulent investment advice.
Michael Zidell has filed a lawsuit against Citibank in Manhattan federal court, claiming the bank failed to prevent a $20 million cryptocurrency romance scam.
Zidell alleges he was targeted in a “pig butchering” scheme, which began on Facebook in early 2023 when a woman named “Carolyn Parker” posed as a successful businesswoman and developed an online romantic relationship with him.
Citibank accused of ignoring signs of $20M crypto romance scam
— MetaEra (@MetaEraHK) June 26, 2025
Citibank has been sued by a self-claimed victim of a crypto romance scam, alleging the bank ignored red flags that allowed scammers to make off with $20 million.
In a lawsuit filed in a Manhattan federal court on… pic.twitter.com/qwcTWE3tiA
She later persuaded him to invest in non-fungible tokens (NFTs) via a platform called OpenrarityPro.
Zidell ultimately transferred over $20 million through 43 bank transactions, with nearly $4 million sent to Guju Inc., which held accounts at Citibank.
Zidell claims Citibank ignored multiple red flags, including large, round-number transactions and suspicious fund movements involving trusts and individuals.
The complaint accuses the bank of failing to implement sufficient security measures and neglecting its duty to monitor fraud, thereby aiding the scam through negligence.
The trading platform vanished in April 2024, along with Zidell’s funds.
Romance scams remain a major threat, with $5.5 billion in reported losses in 2024.
In response, U.S. authorities seized $225 million linked to similar schemes – the largest crypto seizure in Secret Service history.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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