A New York man has sued Citibank, accusing the financial giant of negligence in a Citibank crypto romance scam that cost him $20 million. The lawsuit alleges the bank ignored multiple red flags while processing transactions tied to a sophisticated “pig butchering” fraud scheme.
Filed in Manhattan federal court, the complaint details how Michael Zidell lost millions to scammers who allegedly used Citibank accounts to launder funds. The case spotlights growing concerns about banks’ responsibility to detect financial fraud.
How the Citibank crypto romance scam unfolded
The Citibank crypto romance scam began in early 2023 when Zidell was approached on Facebook by “Carolyn Parker,” a fake persona claiming to be a successful entrepreneur. Over weeks, their online relationship turned romantic before Parker urged Zidell to invest in NFTs through a platform called OpenrarityPro.
“Once trust was established, the scammer pivoted to financial exploitation,” explains FBI financial crimes specialist Mark Johnson. “This is textbook pig butchering – a brutal blend of emotional manipulation and financial predation.”
Zidell sent 43 transfers totaling $20 million to accounts across multiple banks, including $4 million to Guju Inc., a company holding accounts at Citibank.
Citibank accused of “willful blindness” to fraud
The lawsuit claims the Citibank crypto romance scam could have been stopped if the bank had monitored suspicious activity. Key allegations include:
Processing 12 unusually large, round-number transfers to Guju Inc.
Ignoring that recipient accounts showed patterns consistent with money laundering
Failing to file suspicious activity reports (SARs) as required by law
“Citibank turned a blind eye to its statutory duties,” states the complaint. “The bank’s negligence directly enabled this devastating fraud.”
A highlighted excerpt of the complaint claims Zidell sent the allegedly fraudulent platform, OpenrarityPro, over $20 million. Source: CourtListener
Pig butchering scams: A $12B crypto crime wave
The Citibank crypto romance scam reflects a broader epidemic. According to Chainalysis:
Crypto scammers stole $9.9 billion in 2024
Romance scams account for 40% of fraud cases
The Secret Service recently seized $225 million in pig butchering-linked crypto
“These scams are industrial-scale operations,” says cybersecurity expert Lisa Chen. “They use psychological manipulation as effectively as any spy agency.”
Legal experts weigh in on Citibank’s liability
Banking regulations require financial institutions to monitor for suspicious transactions. The Citibank crypto romance scam lawsuit argues that the bank violated:
The Bank Secrecy Act’s anti-money laundering rules
New York’s commercial negligence laws
Federal wire fraud statutes
“Banks can’t claim ignorance when transactions scream fraud,” says former federal prosecutor David Wu. “This case may set important precedents for financial accountability.”
What victims of crypto romance scams should do
If you suspect you’re involved in a Citibank crypto romance scam or similar fraud:
Immediately contact your bank’s fraud department
File reports with the FTC and IC3
Preserve all communication with scammers
Consult a financial crimes attorney
Citibank declined to comment on the lawsuit when contacted by reporters. Meanwhile, Zidell’s case proves how the Citibank crypto romance scam represents both a personal tragedy and a systemic banking failure, one that regulators are increasingly pressured to address.
Olivia Jackson is a US-based cryptocurrency writer and market analyst with a passion for decoding the complexities of blockchain technology and digital assets. With over five years of experience covering the crypto space, she specializes in breaking down market trends, regulatory developments, and emerging Web3 innovations for both retail and institutional audiences.
Her work has appeared in leading finance and tech publications, including CoinDesk, Decrypt, and The Block, where she provides data-driven insights on Bitcoin, DeFi, and the evolving regulatory landscape. Olivia is particularly interested in the intersection of traditional finance and decentralized systems, often exploring how macroeconomic shifts impact crypto markets.
