Victim of $20M Crypto Scam Expands Legal Battle to Additional Banks
Michael Zidell, a victim of a $20 million crypto romance scam, has expanded his legal action to include East West Bank and Cathay Bank, following an initial lawsuit against Citibank. The complaints allege these financial institutions failed to detect and prevent fraudulent transactions connected to a fake NFT trading platform.
How the Facebook Romance Scam Operated
The scheme began when ‘Carolyn Parker‘ contacted Zidell on Facebook in early 2023. Presenting herself as a successful entrepreneur, Parker developed a romantic relationship with Zidell before introducing him to what she claimed was a profitable NFT trading platform.
Bank Oversight Failures in $20M Fraud
Over several months, Zidell transferred more than $20 million to accounts controlled by the scammers. The platform disappeared in April 2023, taking Zidell’s funds with it. Court documents highlight how the banks allegedly ignored multiple red flags in these transactions.
Legal Recourse and Elder Abuse Allegations
Zidell’s lawsuits seek compensation for his losses while accusing the banks of negligence. The complaints against East West Bank and Cathay Bank include additional claims of aiding elder abuse under California law.
Key Case Details
- Total losses exceed $20 million from crypto romance scam
- Three major banks now facing legal action
- Fraud involved fake NFT investment platform
- Banks allegedly failed to monitor suspicious activity
- Additional elder abuse claims in newest filings
