A legal battle has erupted in New York, blending online romance, cryptocurrencies, and a staggering financial loss. Michael Zidell filed a lawsuit against Citibank on June 24, claiming he lost $20 million in a sophisticated romance-investment scam. According to him, the bank should have recognized the red flags and acted accordingly.
🎭 Love as a Trap: The Beginning of the Scam
The story began in January 2023 when Zidell was contacted on Facebook by a woman introducing herself as Carolyn Parker, allegedly a business owner from California. Their communication quickly moved to WeChat, where a romantic relationship developed through video calls and messages. In February, she convinced Zidell to invest in NFTs through a website called OpenrarityPro.com, which she presented as a guaranteed way to make millions.
She showed him what appeared to be account statements as "proof" of her success, and Zidell began transferring funds. In total, he made 43 transfers, with 12 sent to Citibank accounts under the name Guju Inc., amounting to almost $4 million.
🚨 Warning Signs the Bank Allegedly Ignored
Zidell claims that the transactions to Guju Inc. far exceeded the firm’s stated income, as declared during the account opening process, and that Citibank had a duty to investigate the activity. The transfers reportedly showed classic signs of fraud – including large, round-dollar amounts and mismatches with the company’s stated business activity.
The lawsuit accuses Citibank of violating Know Your Customer (KYC) and Anti-Money Laundering (AML) laws by failing to investigate the suspicious activity despite clear warning signs.
🐖 "Pig Butchering" – A Rising Scam Trend
The type of scam that Zidell fell victim to is known as “pig butchering” – a scheme where fraudsters build long-term fake relationships, gain the victim's trust, and then manipulate them into investing massive sums, often in crypto assets.
According to the FBI’s 2024 Internet Crime Report, such scams resulted in the largest crypto-related financial losses, totaling $5.8 billion last year alone.
Elderly Americans were especially targeted: those aged 60 and older lost a collective $2.8 billion, mostly due to fake investment offers disguised as romantic relationships.
#Cryptoscam , #CryptoFraud , #CryptoCrime , #CyberSecurity , #CryptoNewss
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