- Michael Zidell sues Citibank over $20 million crypto scam.
- Citibank allegedly processed 43 suspicious transactions.
- Scam involves fake NFTs without tokens like ETH/BTC.
Lede: Michael Zidell has filed a lawsuit against Citibank in Manhattan federal court, alleging
the bank facilitated a $20 million crypto scam by processing suspicious transactions linked to a pig
butchering scheme.
Nut Graph: The lawsuit spotlights potential vulnerabilities in banking security and increases
scrutiny on Citibank’s compliance practices.
Background on Lawsuit
The issue arose in early 2023 when Zidell, an alleged scam victim, was contacted by an individual posing as
Carolyn Parker, encouraging investments in fake NFTs. Zidell asserts that Citibank processed these transfers without adequate fraud
detection. The accusation centers on 43 transactions totaling $20 million, allegedly linked to the scam.
Zidell holds Citibank accountable, arguing its negligence enabled the fraud.
Impact on Crypto and Banking
The scam’s impact is contained to fraudulent NFT investments; no major cryptocurrencies or DeFi protocols were
compromised. This incident underscores the need for robust anti-money laundering measures. Although there are
no systemic repercussions on crypto markets, it highlights deficiencies in traditional banking dealings with
crypto. Improved oversight might prevent future incidents, aligning banking practices with rapidly evolving
digital asset landscapes.
As of June 26, 2025, there are no available official quotes from key players or leadership involved in
the Citibank lawsuit regarding the $20 million crypto scam.
Regulatory Implications
The regulatory attention may increase, leading to tighter banking rules. Compliance enhancements could arise
from this lawsuit, potentially reinforcing due diligence in future crypto-related transactions.
For further details, refer to the original articles covering the case:
About the author
Galaxy Digital Launches $175M Crypto Venture Fund
Galaxy Digital, led by Mike Novogratz, debuts its first external venture fund with a focus on stablecoins and blockchain infrastructure, aiming to boost crypto adoption.
Galaxy Digital Secures $175 Million for First External Fund
Galaxy Digital raises $175M to launch its first external DeFi fund, led by Mike Novogratz.
Binance Alpha Points Lead to SAHARA Airdrop
Explore the SAHARA token airdrop eligibility for Binance Alpha users and its implications on market trends.
Citibank Allegedly Ignored Suspicious $20M Crypto Transactions
Citibank faces lawsuit over claims of negligence in a $20 million NFT scam.
Changliang Technology Researches Stablecoin Digital Solutions
Changliang Technology's exploration into stablecoins and its potential impact on the digital finance sector by 2025.
Binance to Support Horizen (ZEN) Contract Swap in July 2025
Binance to facilitate Horizen (ZEN) contract swap, pausing deposits/withdrawals on July 21, 2025.
Related
Galaxy Digital Launches $175M Crypto Venture Fund
Galaxy Digital, led by Mike Novogratz, debuts its first external venture fund with a focus on stablecoins and blockchain infrastructure, aiming to boost crypto adoption.
Galaxy Digital Secures $175 Million for First External Fund
Galaxy Digital raises $175M to launch its first external DeFi fund, led by Mike Novogratz.
Binance Alpha Points Lead to SAHARA Airdrop
Explore the SAHARA token airdrop eligibility for Binance Alpha users and its implications on market trends.
Changliang Technology Researches Stablecoin Digital Solutions
Changliang Technology's exploration into stablecoins and its potential impact on the digital finance sector by 2025.
Binance to Support Horizen (ZEN) Contract Swap in July 2025
Binance to facilitate Horizen (ZEN) contract swap, pausing deposits/withdrawals on July 21, 2025.
KaJ Labs Allocates $160M to Bitcoin for AI Network
KaJ Labs, a Singapore-based blockchain entity, announced a significant Bitcoin purchase aimed at bolstering Imagen Network’s AI infrastructure.
Be the first to leave a comment