Citibank Sued in $20M Romance Scam Tied to Fraudulent Transfers

Citibank is at the center of a growing controversy as it faces a high-profile legal battle in federal court. The financial giant has been named in a lawsuit filed by Michael Zidell, who claims he was the victim of a sophisticated romance scam that funneled millions through Citibank accounts. The Citibank Romance Scam Lawsuit accuses the bank of negligence and failure to detect blatant fraud warning signs.

Zidell alleges that scammers, posing as a romantic interest, manipulated him into transferring over $20 million in total, with nearly $4 million routed through Citibank. The complaint, filed in Manhattan federal court, argues that Citibank violated its legal obligations by processing suspicious transactions without proper scrutiny.

The lawsuit stems from a scam that began in early 2023 when Zidell met a woman using the name “Carolyn Parker” on Facebook. The two developed an online romantic relationship, during which Parker persuaded Zidell to invest in NFTs via a trading platform she recommended. Zidell claims the platform was part of an elaborate romance scam money laundering Citibank scheme designed to defraud him.

Over the course of several months, Zidell executed 43 separate transfers to various bank accounts, trusting the platforms assurance that multiple banks were required for handling large investment volumes. Of those, 12 transfers—totaling approximately $4 million—were directed to accounts at Citibank under the name Guju Inc.

According to the complaint, the nature of the transfers—large, round sums sent in rapid succession—should have raised immediate red flags. The $20 million scam Citibank news story is rapidly gaining attention as the case underscores the growing threat of romance scams involving cryptocurrency and unregulated investment platforms.

Zidell contends that Citibank failed to conduct adequate due diligence, monitor account activity, or apply proper anti-money laundering protocols. The suit forms part of a broader Citibank fraud case 2025 update, where financial institutions are being scrutinized for their role—or inaction—in enabling scams.

Romance scams, particularly those involving crypto “pig butchering” schemes, are surging. In 2024 alone, losses exceeded $9.9 billion globally. With U.S. authorities intensifying enforcement and already seizing hundreds of millions in related assets, Citibank sued over Fraud 2025 case could set a legal precedent for banks responsibilities in combating financial exploitation.

Citibank has yet to issue a public comment on the matter.