Citibank Sued for Ignoring Red Flags in $20 Million Crypto Scam

Citibank faces legal action over its alleged failure to address warning signs in a $20 million cryptocurrency fraud case. Plaintiff Michael Zidell claims the bank facilitated suspicious transactions, including nearly $4 million transferred to scam-linked accounts.

The scheme, known as pig butchering, began in early 2023 when Zidell was approached through Facebook by a woman posing as a successful businessperson. The fraudster established a romantic relationship before convincing Zidell to invest in NFTs through a purported trading network.

This lawsuit highlights increasing scrutiny of financial institutions' role in preventing crypto-related fraud. As digital asset scams proliferate, banks face growing pressure to implement more robust monitoring systems for suspicious activity.