Michael Zidell, a victim of a $20 million crypto pig butchering scam, has filed a lawsuit against Citibank in Manhattan Federal Court
As per the filed lawsuit by Michael, Citibank turned a blind eye to its statutory duties and obligations at the time when he was permitted to deposit millions of dollars to scammers who had accounts at the bank.
The filed lawsuit alleges that Citibank was negligent in processing 43 transactions totalling $20 million to a fraudulent account linked to a ‘pig butchering’ crypto romance scam.
It is worth noting that the scammers using the alias ‘Carolyn Parker’ pursued the victim to invest in a fake NFT venture in early 2023
The lawsuit also alleges that Citibank ignored suspicious transaction alerts, particularly for 12 transactions totalling around $4 million to a company called Guju Inc., and failed to implement adequate anti-money laundering protocols
A gist of a scam occurred with Michael Zidell
As per the available information, Michael Zidell initially developed a friendly, social relationship with Carolyn Parker, which he later perceived as romantic; Parker convinced the victim to invest in an NFT token venture, promising significant returns.
Over several months, Zidell sent 43 wire transfers totalling $20 million to various accounts in the bank held by the bad actors. And in late April 2023, it was reported that the website of the investment platform and the funds of the victim disappeared.
The lawsuit highlights “ systematic vulnerabilities at the intersection of fiat and crypto systems,” suggesting Citibank’s AML processes are insufficient to address modern crypto scams.
Citibank allegedly did not properly monitor the accounts receiving money from Zidell’s funds, despite large sums being transferred in and out in a manner consistent with fraudulent activities.
Pig butchering is troubling the crypto on the verge
Pig butchering scams, a sophisticated blend of romance investment and confidence fraud, have emerged as a significant and escalating threat to the crypto ecosystem.
According to a report by Chainalysis, the cryptocurrency market lost $9.9 billion to a scam, with pig butchering accounting for 33.2% of the total amount stolen in 2024
The 33.2% of pig butchering signals a clear spike of 40% in a year-over-year time frame; on the other hand, a study by the University of Texas notes that between January 2020 and February 2024, the global market lost $75.3 billion in pig butchering.
In 2025, pig butchering has emerged as one of the most damaging types of scam techniques, with wallet breaches and CEX hacks being some of the most prominent scam types troubling crypto users.
In December last year, it was reported that $3.6 billion had been stolen in Ethereum funds to pig butchering across 200,000 identified cases.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
California Man Sentenced to 78 Months for $250M Crypto Theft Ring Role
A U.S. federal court sentenced Marlon Ferro, a 20-year-old California man also known as "GothFerrari," to 78 months in prison on Wednesday for his role in a nationwide social engineering conspiracy that stole over $250 million in cryptocurrency assets, according to a statement from the Department of
CryptoFrontier3h ago
Kenya arrests suspects over an AI crypto investment scam platform, court orders 7 days of detention
Local media, citing court documents, reported that Kenya’s Criminal Investigations Department (DCI) Capital Markets Fraud Investigations Unit arrested suspect Dickson Ndege Nyakango at the I&M Bank branch on Kenyatta Avenue on May 4. DCI detectives told the court that the alleged fraud platform had scammed about $440k from multiple investors. The court ordered Nyakango be remanded in custody at the Kilemani Police Station for seven days.
MarketWhisper5h ago
Samourai Wallet Co-Founder Sentenced to 5 Years, Faces $2M Legal Debt
According to Cointelegraph, on May 7, Keonne Rodriguez, co-founder of Samourai Wallet, was sentenced to five years in prison and fined $250,000 for operating an unlicensed money transmitter. Rodriguez is facing an additional $2 million in legal fees and has appealed to the crypto community for
GateNews6h ago
CFTC Sues 5-6 States Over Prediction Market Authority at Consensus 2026
According to CFTC Chair Michael Selig at Consensus 2026, the CFTC has sued approximately five to six states, including Arizona, Connecticut, Illinois, and New York, over regulatory authority of prediction markets. The core dispute centers on whether the CFTC or state regulators have jurisdiction ove
GateNews7h ago
California man Marlon Ferro was sentenced to 78 months for stealing cold wallets worth $250 million
According to an official statement released by the U.S. Department of Justice (DOJ) on May 7, 20-year-old California man Marlon Ferro was sentenced by a federal court to 78 months in prison for his involvement in a nationwide crypto asset social engineering scam, along with 3 years of supervised release and $2.5 million in restitution. The DOJ statement said the criminal group stole more than $250 million worth of crypto assets from multiple victims.
MarketWhisper9h ago
Bittrex seeks to withdraw the 2023 settlement, asking the U.S. SEC to refund a $24 million fine
According to Decrypt reports and related court documents, the now-closed crypto exchange Bittrex filed a motion to dismiss this week in the U.S. Federal Court in Seattle, seeking to overturn its 2023 settlement with the U.S. Securities and Exchange Commission (SEC) and requesting that the SEC refund the $24 million civil penalty it has already paid.
MarketWhisper9h ago
