Romance Scam Victim Blames Banks for $20M Crypto Loss

Quick Takeaways

• Michael Zidell lost over $20 million in a cryptocurrency scam linked to a fake romance Scam.
• He’s now suing Citibank, East West Bank, and Cathay Bank for enabling fraud
• The lawsuits could push banks to pay closer attention to crypto transactions.

He Thought He Found Love—and a Smart Crypto Investment

When Michael Zidell met “Carolyn Parker” on Facebook in early 2023, it felt like a lucky break. She seemed charming, successful, and financially savvy. 

Before long, their conversations turned into something more personal—and eventually romantic.

But what looked like a promising relationship took a dark turn. 

Carolyn told Michael she’d made a fortune investing in crypto, particularly in NFTs (non-fungible tokens). She encouraged him to invest too, even pointing him to a platform she said was completely legitimate.

Trusting her, Michael took the leap. 

He sent almost $20 million through 43 bank transfers over the course of the following few months, thinking he was investing in a lucrative cryptocurrency enterprise.

Then one day, the website was gone. Carolyn disappeared. And just like that, so did every dollar he sent.

Now He’s Suing Three Banks for Letting It Happen

Michael isn’t just angry at the scammers—he’s also holding the banks accountable. After already filing a lawsuit against Citibank, he’s now going after East West Bank and Cathay Bank, claiming they ignored red flags and allowed the scam to happen.

Here’s how the money was sent:

• $7 million to accounts at East West Bank
• $9.7 million to Cathay Bank
• $4 million to Citibank

According to Michael, each bank processed high-dollar transfers without ever questioning the unusual patterns—no flags, no calls, no warnings.

They Should’ve Seen It Coming

In his lawsuits, Michael says these weren’t just random transactions. He points out that:

• The amounts were large and repetitive
• The accounts were tied to a crypto trading platform with no real history
• The whole thing moved too fast to be normal banking behaviour

He believes the banks had a duty to spot the signs and step in—especially with crypto transactions, which are known for fraud risks. Instead, they just pushed the money through.

In his claims, the banks are accused of carelessness and of helping to facilitate fraud. He argues they didn’t just fail him—they helped the scammers get away with it.

A New Allegation: Elder Abuse

A more serious charge included in the lawsuits against East West and Cathay is aiding and abetting elder abuse. Under California law, that applies to anyone aged 65 or older who’s been financially exploited.

Michael doesn’t say exactly how old he is, but if he’s over 65, the banks could face even steeper consequences for not protecting him when they should have.

This wasn’t just a financial loss, he says. It was emotional and personal, too.

What This Means for the Crypto World

This case isn’t just about one man’s loss.This brings up some important questions about the role of traditional banks in the crypto landscape and whether they’re really doing enough to safeguard people from scams.

Banks are supposed to keep an eye out for suspicious transactions, especially in large amounts of money. However, according to Michael, despite the warning signs, there wasn’t even a moment when anyone thought about asking whether something was odd.

If he is successful, his legal measures could set a major precedent. It might be necessary for banks to treat cryptocurrency-related transactions more seriously and to combat fraud more aggressively.

What Michael Wants Now

Michael is asking for:

• His money back
• Legal fees
• Interest
• A jury trial to make his case public

So far, none of the banks have commented. But the case is already getting attention, and it could become a major turning point in how crypto scams are handled in the banking world.