Individual Files Lawsuit Against Citibank for Transferring Massive Amounts to Deceptive NFT Platform
In a shocking turn of events, a Texas man, Michael B. Zidell, has filed a lawsuit against Citibank, accusing the financial institution of complicity in a $20 million "pig butchering" scheme involving non-fungible tokens (NFTs).
The scam began with a friendly conversation on Facebook, where Zidell was contacted by someone claiming to be Carolyn Parker, a California business owner. Parker, who purportedly invested in NFTs on OpenrarityPro.com, reported significant gains, encouraging Zidell to invest as well.
Trusting Parker's claims, Zidell followed her lead and made 43 wire transfers totalling $20 million to various accounts to "make a market" for NFTs on OpenrarityPro.com. One of the recipients was a Citibank account under the name Guju, Inc., receiving nearly $4 million.
However, the platform vanished shortly after, and when Zidell attempted to withdraw funds, he was asked for an additional payment called a "risk deposit." Suspecting foul play, Zidell launched an investigation and discovered that the account he had been dealing with was a scam.
The lawsuit alleges that Citibank ignored significant red flags and provided substantial assistance to the scammers, thereby enabling the fraud. The case is being heard in New York federal court, with Zidell's team arguing that Citibank "materially aided" the scam by providing services to Parker and her partners, and by failing to act on repeated red flags.
The legal arguments in the case raise the question of where the line of responsibility falls - on the victim or on the institutions handling the money, as financial fraud grows more complex. The lawsuit accuses Citibank NA of complicity in the scam, suggesting that the bank's alleged negligence allowed the scammers to operate undetected and defraud Zidell of a substantial amount of money.
Citibank is facing allegations that it allowed unusual activity that went against the account's original documents, which should have triggered review or action. The bank is yet to respond to the allegations publicly.
As the legal proceedings unfold, the case serves as a cautionary tale for investors, highlighting the importance of due diligence and vigilance in the rapidly evolving world of digital assets.
In the midst of this rapidly evolving digital assets landscape, the case against Citibank raises questions about the role of technology and finance in facilitating crime-and-justice issues, as Zidell's lawsuit alleges complicity in a $20 million NFT scam. This general-news event exposes potential weaknesses in business practices, where such institutions might be providing substantial assistance to scammers by disregarding significant red flags.
