JPMorgan had to pay $ 2.5 million to settle the lawsuit because it was too expensive for cryptocurrency fees
JPMorgan Chase is said to have agreed to pay $ 2.5 million to settle the cryptocurrency suit. Filed in 2018, the lawsuit alleges that the bank was overcharging on customers who purchased cryptocurrencies with Chase credit cards, categorizing purchases as advances.
JPMorgan Chase is accused of overcharging customers who have purchased cryptocurrencies with their Chase credit cards. The bank has decided to treat purchases as an advance, in the market, at a higher fee than regular purchases. A class action lawsuit was filed in 2018 and was settled out of court in March this year. As part of the agreement, JPMorgan Chase does not admit misconduct. Reuters reported on Thursday that following a motion filed in Manhattan federal court this week, JPMorgan Chase agreed to pay $ 2.5 million to settle the case, noting:
The plaintiff said the settlement would result in class members receiving about 95% of the fee they said they were illegally charged with.
One of the plaintiffs, Brady Tucker, claimed that JPMorgan violated the Loan Act because the bank did not notify customers that the purchase of cryptocurrencies is being considered as an advance. This classification results in a higher charge for the customer. In his complaint, Tucker explained that the bank had charged him more than $ 160 in fees and interest for regularly buying cryptocurrencies from Coinbase with his credit card and refused to repay the funds. charge.
When the lawsuit was filed, JPMorgan had a hostile attitude to cryptocurrencies at the time. CEO Jamie Dimon called bitcoin a scam but later admitted to CNBC that he regretted doing so.
JPMorgan has come a long way since its initial stance on bitcoin. The bank even created its own stablecoin called JPM Coin, which is a digital currency designed to make instant payments using blockchain technology, its website describes. This is a digital currency representing US dollars held in the designated accounts at JPMorgan Chase N.A. In short, JPM Coin is always worth the equivalent of a US dollar.
Recently, there were also reports that the bank currently provides banking services for two bitcoin exchanges, Coinbase and Gemini. Meanwhile, JPMorgan Chase reported a 70% drop in profits in the first quarter as the bank expected the coronavirus-led economic crisis to worsen.
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