Victim sues two banks for aiding crypto scam, seeking $20M in damages

Michael Zidell, who fell victim to a crypto romance scam, is now suing East West Bank and Cathay Bank for allegedly aiding scammers. He sent over $16 million in transfers to accounts at the two banks, claiming they ignored red flags. Zidell previously sued Citibank for a similar reason.

Zidell was contacted by “Carolyn Parker” on Facebook, who claimed to have made millions with NFT investments. He sent over $20 million to various bank accounts recommended by a trading platform. The platform disappeared with his funds, leading to his losses.

The lawsuit against East West Bank and Cathay Bank accuses them of negligence and aiding securities fraud. Zidell claims the banks facilitated the scam by allowing suspicious transactions without proper monitoring. He seeks compensatory damages and a jury trial for his losses.

Zidell is also holding the banks liable for “aiding and abetting elder abuse,” seeking additional damages. While his age is not disclosed, California law defines elders as 65 and over. The lawsuit aims to hold the banks accountable for their role in the scam and recover his losses.

Read more at Cointelegraph: Crypto Scam Victim Ropes 2 More Banks Into $20M Fraud Suit