Alleged Crypto Romance Scam Victim Sues Two More Banks Over $17M Transfers

Michael Zidell, who recently sued Citibank for allegedly ignoring fraud warnings tied to a crypto romance scam, has now filed lawsuits against East West Bank and Cathay Bank, claiming the institutions failed to block suspicious transactions that drained millions from his accounts. Filed in a California federal court on Tuesday, Zidell’s latest lawsuits accuse the banks of “turning a blind eye to their statutory duties.” Zidell alleges he sent 18 transfers totaling nearly $7 million to scammers’ accounts at East West Bank, and 13 transfers worth over $9.7 million to Cathay Bank, following instructions from individuals he believed were helping him invest in non-fungible tokens (NFTs). This comes after Zidell sued Citibank on June 24, claiming it ignored red flags in 12 transactions worth around $4 million tied to the same fraud scheme. East West Bank and Cathay Bank have yet to comment publicly on the lawsuit. Zidell Allegedly Fell for a Romance Scam Zidell’s complaints state he met “Carolyn Parker,” a supposed business owner, on Facebook in early 2023, and they quickly formed a romantic relationship . Within a month, Parker allegedly told Zidell she had made significant profits trading NFTs and encouraged him to do the same, directing him to a trading platform she claimed to trust. Trusting her guidance, Zidell began transferring funds across multiple banks as instructed by the platform, believing it was necessary due to high deposit volumes. By April 2023, the platform’s website vanished, and Zidell’s investments—totaling over $20 million across all transfers—were gone. “Romance scam. Rug pull. Pig butchering. These are just some of the terms to describe the scam that befell the Plaintiffs,” the lawsuit states. Claims of Negligence and Elder Abuse Zidell’s lawsuits argue that East West Bank and Cathay Bank aided the fraud by providing accounts and wire transfer services without investigating suspicious transaction patterns, despite having a duty to monitor for fraudulent activity. The lawsuit highlights that the large, round-figure transfers should have triggered closer scrutiny by the banks. Additionally, Zidell’s legal team is seeking to hold the banks liable for “aiding and abetting elder abuse” under California law, which applies to individuals aged 65 and older, although Zidell’s age is not disclosed in the filings. Zidell seeks compensatory damages, legal costs, and interest, aiming for a jury trial as he pushes for accountability from banks amid rising crypto romance scam cases. The post Alleged Crypto Romance Scam Victim Sues Two More Banks Over $17M Transfers appeared first on TheCoinrise.com .

Source: The Coin Rise