Legal Actions Against Financial Institutions
In a troubling development, a self-identified victim of a cryptocurrency romance scam has expanded his legal actions against financial institutions. Michael Zidell has announced that he has initiated a new lawsuit against East West Bank and Cathay Bank, claiming that these banks neglected their responsibilities and failed to notice suspicious activities in his transactions.
Details of the Lawsuit
Filed in a California federal court, Zidell’s latest complaint alleges that he conducted a staggering 18 money transfers, amounting to nearly $7 million, to an account at East West Bank. Additionally, he contends that he transferred over $9.7 million through 13 transactions to another account at Cathay Bank.
Earlier this year, specifically on June 24, Zidell accused Citibank of being complicit in fraud by overlooking obvious warning signs related to 12 transfers that totaled approximately $4 million to accounts that he claims were linked to the same scammers.
The Scam Experience
According to Zidell, his troubles began in early 2023 when he met a woman named “Carolyn Parker” on Facebook. He claims they developed a romantic relationship, during which Parker purportedly shared her success in non-fungible token (NFT) investments. Encouraged by her claims, Zidell invested significantly, sending out a total of 43 transfers that exceeded $20 million to various accounts as instructed by a trading platform recommended by Parker. He later discovered that the platform’s website had vanished, along with his invested funds.
Allegations and Legal Claims
Terms often associated with scams, such as “romance scam” or “rug pull,” encapsulate Zidell’s experience. In his new lawsuit, alongside the allegations of aiding and abetting securities fraud, Zidell also alleges that the two banks contributed to elder abuse. While he does not specify his age, related California legislation defines an elder as someone aged 65 or older. His legal action seeks compensatory damages, interest, and coverage for legal fees through a jury trial.
Zidell claims that both East West Bank and Cathay Bank failed in their duty to monitor for questionable transactions, despite the sums involved being significant enough to warrant closer examination. As of now, Cointelegraph has reached out to both banks for their comments regarding the ongoing legal situation.
