Citibank Sued Over $20M Loss Linked to Crypto Romance Scam

Highlights:

• A man lost 20M of funds in a crypto romance scam, which was connected to fake investments in NFTs.
• Citibank is said to have disregarded fraud indications and processed questionable wire transfers.
• The lawsuit alleges that the bank has not honored its duties in anti-money laundering.

A federal lawsuit has accused Citibank of negligence tied to a $20 million crypto romance scam. According to the legal complaint, which was filed on June 24, the bank did not do anything about significant red flags. Michael Zidell, the plaintiff, alleges that Citibank had allowed twelve wire transactions, adding up to almost $4 million, to proceed unverified.

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These payments were made to Guju Inc., an organization the scammers used to channel the money. The initial transfer was reported to be even more than the reported revenue of Guju Inc., as mentioned in the court documents. The account of the company also indicated lower amounts of its monthly limits than it was receiving.

Zidell believes that Citibank should have barred or examined the transactions, citing abnormal patterns. These were huge, round-number deposits that were not aligned with the profile of the business. In addition, he claims that the bank did not follow money laundering rules and standard banking procedures.

Citibank accused of ignoring signs of $20M crypto romance scam

Citibank has been sued by a self-claimed victim of a crypto romance scam, alleging the bank ignored red flags that allowed scammers to make off with $20 million.

In a lawsuit filed in a Manhattan federal court on… pic.twitter.com/qwcTWE3tiA

— MetaEra (@MetaEraHK) June 26, 2025

Real Losses in Fake Romance Scam

The lawsuit by Zidell describes the events that led to the scam, which happened over a fraudulent online relationship. Earlier in 2023, a woman who identified herself as Carolyn Parker reached out on Facebook. The lady pretended to be a California entrepreneur and used WeChat to keep in contact.

The communication gradually turned into a romantic bond, which Zidell believed in. In less than one month, Parker started promoting NFT investments via a site named OpenrarityPro.com. Moreover, she provided screenshots of what seemed to be legitimate profit and earnings statements. Based on her recommendation, Zidell wire transferred money to different accounts provided by the platform. These transactions were distributed among banks in order to resemble a large-scale volume of investments. However, twelve of these payments were diverted to the account of Guju Inc. at Citibank.

The site vanished by April 2023, and so did the money that Zidell transferred. The complaint now asserts that Citibank should have conducted an investigation of the Guju Inc. account. Zidell further complains that the bank should have identified the irregularity through a pattern of account setup and money inflow.

Growing Scrutiny on Banks Amid Crypto Romance Scam Surge

The case reflects growing concern with banks following the surge of digital asset fraud. Pig butchering scams were recently regarded by the FBI as one of the most harmful types of crypto fraud. These frauds involve romantic deception to make the victims engage in fraudulent investments.

🚨 $9.3B in crypto fraud losses in 2024. The latest FBI IC3 report confirms what Cyvers is fighting daily.

💔 Pig Butchering scams led the pack—$5.8B lost in fake investment schemes.

🧠 At Cyvers, our AI flags these scams before the damage is done.
💸 Millions saved for… pic.twitter.com/rdxmCOZeXv

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Moreover, older adults are reported to be the most affected, with victims over the age of 60 constituting almost half of all losses. The case of Zidell further puts pressure on the banks to implement more stringent checks of compliance.

He claims Citibank overlooked signs that were “clearly suspicious,” including money sent from unrelated individuals and trust accounts. Furthermore, the lawsuit argues that such patterns should have activated mandatory bank safeguards. With the case now in court, attention is focused on institutional responsibility in crypto-linked fraud. Zidell demands damages to recover his money loss and court costs.

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