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Cathay Bank has urged a federal judge to dismiss allegations that it played a silent role in a $20 million romance-driven NFT scam, insisting it had no knowledge, no duty, and no hand in the alleged fraud.

In its Wednesday filing, the California-based lender said plaintiff Michael B. Zidell — who claimed he was ensnared in a “pig butchering” scheme — cannot tie the bank to the alleged wrongdoing. Cathay Bank argued Zidell was never its customer and therefore the institution owed him nothing under California law.

A Romance Gone Financially Fatal

Zidell’s lawsuit, lodged in July, paints a story of financial seduction. He claims he was lured by Carolyn Parker, a woman he met on Facebook in early 2023 and believed he was building a romantic relationship with. She allegedly steered him toward investing in OpenRarityPro, an NFT enterprise that promised big returns.

Convinced by Parker and reassured by representatives of OpenRarityPro, Zidell transferred $20 million through multiple banks, including Cathay Bank and fellow defendant East West Bank. Then, as if a trapdoor opened beneath him, the OpenRarityPro website disappeared, along with his money.

The Bank’s Rebuttal

Cathay Bank maintains that, at worst, it was an “unwitting participant” in the scheme. The bank’s motion stresses that California law places no obligation on banks to police the intentions of account holders, investigate potential fraud, or disclose suspicious activities in third-party accounts.

“Because plaintiffs fail to allege that Cathay Bank had any knowledge of the securities fraud, they do not allege that Cathay Bank knowingly assisted the scammers,” the filing stated.

The bank also dismissed claims of securities fraud, noting Zidell had not shown the existence of a true security under law. According to Cathay Bank, Parker told Zidell his profits depended on his own investment efforts — not the work of others, a key legal distinction.

Elder Abuse and Jurisdictional Battle

Zidell also accused the bank of elder abuse. But Cathay Bank countered that the statute does not apply since Zidell is a Texas resident, not a Californian. Further, the bank noted that Zidell’s trusts, also listed as plaintiffs, cannot sue under Texas law without trustee action.

East West Bank, also named in the complaint, allegedly processed 30 wire transfers totaling $16.7 million from Zidell’s accounts to entities tied to the NFT operation.

High-Profile Legal Teams

Zidell is represented by James K. Schultz, Tuan Van Uong, David Clouston, and Leslye E. Moseley of Sessions Israel & Shartle LLC.
Cathay Bank’s defense is led by Tod V. Beebe of Clark Hill LLP, alongside John D. Lombardo and Kevin M. Toomey of Arnold & Porter Kaye Scholer LLP.

The case is Zidell et al. v. East West Bank et al., case number 2:25-cv-06017, pending in the U.S. District Court for the Central District of California.