Citibank Faces $20 Million Lawsuit Over Alleged Romance Scam

Citibank sued for alleged failure to flag suspicious $20M transactions linked to romance scam.

What to Know:

Texas man sues Citibank over $20 million romance scam.
Scam involved 43 bank transfers across multiple accounts.
No major crypto assets directly impacted in scam.

A Texas resident filed a lawsuit against Citibank, alleging negligence leading to the loss of $20 million in a romance scam involving suspicious transactions from January to April 2023.

This case highlights the challenges financial institutions face in detecting sophisticated scams, raising questions about banks’ anti-fraud measures.

$20 Million Lost: Texas Man Sues Citibank

Michael Zidell, a Texas man, claims he lost $20 million in a scam involving NFTs. The alleged scammer, “Carolyn Parker,” used Facebook for fraudulent communication. Zidell claims Citibank processed nearly $4 million in suspicious transactions. The funds were funneled through multiple bank accounts, raising concerns over the bank’s monitoring processes.

“Citibank turned ‘a blind eye to its statutory duties and obligations’ when it allowed [the victim] to deposit millions of dollars to scammers who have accounts at the bank.” — Plaintiff’s legal filing, June 2025: Cointelegraph

Citibank’s $4M in Alleged Suspicious Transactions

Approximately $4 million of the total loss passed through Citibank accounts. The lawsuit suggests these transactions should have triggered suspicion under anti-money laundering protocols. The lawsuit’s allegations against Citibank imply financial institutions may face increased scrutiny and pressure to enhance fraud prevention. No official statements were made as of June 26, 2025.

Romance Scam Losses Reach $9.9 Billion in 2024

Romance scams linked to cryptocurrency have seen significant losses, with $9.9 billion tallied in 2024 alone. This incident mirrors broader trends in banking-related vulnerabilities. Given current legal and regulatory responses, financial institutions may need to leverage past cases, as extensive asset seizures have previously been conducted to counter such scams. The growing danger and sophistication of pig butchering scams has been highlighted, emphasizing collaboration with large financial institutions for effective asset tracing and seizure.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

Citibank Faces $20 Million Lawsuit Over Alleged Romance Scam

Citibank Faces $20 Million Lawsuit Over Alleged Romance Scam

$20 Million Lost: Texas Man Sues Citibank

Citibank’s $4M in Alleged Suspicious Transactions

Romance Scam Losses Reach $9.9 Billion in 2024

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