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JPMorgan to pay $ 2.5 million for charging excessive fees to customers who bought cryptocurrencies

Cryptocurrency

London JPMorgan bank facade (Photo: Håkan Dahlström / Flickr)

Chase Bank NA, the sixth largest bank in the world and a subsidiary of JPMorgan Chase & Co, will pay approximately $ 2.5 million to settle a class action claim that it has charged excess fees from customers who have bought cryptocurrencies using your credit cards.

The amount was released by Reuters after a lawsuit on Tuesday in the federal court in Manhattan. JPMorgan Chase does not admit irregularities in the agreement, and customers who are part of the action will receive approximately 95% of the fees previously paid.

The lawsuit claimed that Chase Bank customers who used their credit card to buy cryptocurrency were unduly paid fees equivalent to "cash advance". The lawsuit originally asked for $ 1 million for affected customers, but the final settlement is significantly higher.

Brady Tucker, Ryan Hilton and Stanton Smith filed suit in 2018 after receiving exorbitant fees for cryptocurrency purchases, claiming that there was no notice of the bank's policy change.

Chase Bank argued that the purchases were for “cash transactions”, but a judge ruled in March that customers showed that this categorization applied only to fiat currency transactions.

JPMorgan Chase CEO Jamie Dimon has long been a critic of cryptocurrencies. However, a book to be released on Coinbase claims that cryptocurrency exchange CEO Brian Armstrong has been secretly meeting Dimon backstage since 2018.

Your company's position on the cryptocurrency market has also changed. Earlier this month, the bank approved accounts for Coinbase and the Gemini exchange, in addition to JPMorgan Chase having its own stablecoin, JPM Coin, used for interbank payments and supported by its extensive fiduciary holdings.

* Translated and republished with authorization from Decrypt.co


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