Michael Zidell, who lost $20 million in a crypto romance scam, has filed lawsuits against East West Bank and Cathay Bank, adding to his recent legal action against Citibank.
Zidell alleges these banks failed to act on warning signs and ignored their legal responsibilities, allowing scammers to use their services.
According to the complaint filed in a California federal court, Zidell transferred nearly $7 million through 18 transactions to an East West Bank account and over $9.7 million via 13 transfers to Cathay Bank.
Earlier, Zidell sued Citibank for allegedly overlooking red flags in 12 transfers totaling about $4 million linked to the scam.
The fraud began when Zidell was contacted on Facebook in early 2023 by someone identifying as Carolyn Parker, who claimed to be a business owner.
Parker reportedly convinced Zidell to invest in non-fungible tokens (NFTs), directing him to a trading platform and encouraging him to send funds through multiple banks due to high customer deposit volumes.
Zidell sent 43 transfers amounting to more than $20 million before the platform’s website disappeared in April 2023, taking his funds with it.
In his lawsuits, Zidell describes the incident as a “romance scam,” “rug pull,” and “pig butchering,” terms commonly used to describe elaborate fraud schemes.
The complaints accuse East West Bank and Cathay Bank of negligence and of materially assisting the scammers by providing banking services that enabled the fraud.
“Defendants through their recklessness, materially aided Parker and her co-conspirators by opening bank accounts, providing services including wire transfers and allowing them to be used to perpetrate the NFT Enterprise scam,” the lawsuit states.
The suit also claims the banks failed to monitor suspicious transactions, despite large and unusual transfers that should have triggered investigations.
Additionally, Zidell’s complaint alleges the two banks are liable for “aiding and abetting elder abuse,” a charge not made against Citibank.
Zidell’s legal actions seek compensatory damages, legal fees, and interest, with the case set for a jury trial.