A victim of a substantial crypto-related romance scam who initiated a pioneering lawsuit against Citibank has filed a second round of legal action against two other financial institutions.
Latest Lawsuit Targets Two Banks
Michael Zidell, the self-proclaimed victim, sued East West Bank and Cathay Bank in a California federal court on Tuesday. His complaint accuses the banks of disregarding their “statutory duties and obligations” by operating accounts for the alleged scammers.
Zidell alleges he wired 18 transfers aggregating nearly $7 million to an account at East West Bank and 13 transfers totaling over $9.7 million to an account at Cathay Bank.
Zidell previously sued Citibank on June 24, accusing it of failing to halt $4 million in questionable wire transfers sent to accounts allegedly held by the scammer at that institution for separate transfers amounting to 12 in total.
The Alleged Scam Unfolded Online
Zidell’s complaint details how “Carolyn Parker,” purporting to be a business magnate, contacted him via Facebook around early 2023, developing into what Zidell claims became a romantic relationship.
According to Zidell, Parker confessed that she had generated considerable wealth through non-fungible token (NFT) investments just a month after starting their relationship. She persuaded him to invest, guiding him to a trading platform.
Over several months, Zidell asserted he made 43 separate wire transfers adding up to over $20 million to various accounts—provided by the platform—which claimed it needed to handle large deposit volumes across multiple banks, citing counterparty risks.
His narrative continues: The platform he used, and the alleged claimants themselves, vanished in April 2023. This resulted in a $20 million rug pull following an alleged romance orchestrated partly through defrauding him via NFT distractions.
“Romance scam. Rug pull. Pig butchering. These are just some of the terms to describe the scam that befell the Plaintiffs.” — Zidell’s legal filing
Negligence Claims Against the Banks
In his lawsuit against East West and Cathay banks, Zidell seeks liability for negligence and as “aiders and abettors” of securities fraud.
The lawsuit contends: “Defendants through their recklessness, materially aided Parker and her co-conspirators by instituting bank accounts, providing wire transfer services, and allowing them to facilitate the NFT Enterprise scam.” It argues the banks had a statutory duty to exercise due diligence but “failed to detect clearly suspicious transactions.”
Zidell asserts the sheer volume of funds, characteristic of such suspicious transfers, should have compelled an investigation by the banks.
Elder Abuse Allegation Added
In the lawsuit specifically targeting East West and Cathay, Zidell alleges these banks are complicit in “aiding and abetting elder abuse,” an accusation not directed at Citibank. The exact age of Zidell is not provided in the filing, but California law designates individuals aged 65 and older as elders.
At the core of Zidell’s current request is a demand for substantial remedies: compensatory damages reflecting his financial losses, legal costs, and interest accumulation, all set for determination by a jury.
Summary: A victim of a Facebook-assisted romance and NFT scam, who previously sued Citibank for missing red flags, has extended his legal action against two other financial institutions. He alleges these banks neglected their obligations and actively aided the fraudulent scheme by facilitating wire transfers, knowing or ought to have known of their suspicious nature.
