JPMorgan to Pay $2.5 Million to Settle Lawsuit for Overcharging Crypto Fees

JPMorgan Chase has reportedly agreed to pay $2.5 million to settle a crypto class-action lawsuit. Originally filed in 2018, the suit alleges that the bank overcharged customers for buying cryptocurrencies using Chase credit cards, classifying the purchases as cash advances.

JPMorgan Settles a Crypto Class Action Lawsuit

JPMorgan Chase allegedly overcharged its customers who bought cryptocurrencies with their Chase credit cards. The bank decided to treat the purchases as “cash advances,” which carry higher fees than normal purchases. A class-action lawsuit was filed in 2018 and was settled out of court in March this year. As part of the deal, JPMorgan Chase is not admitting to the wrongdoing. Reuters reported Thursday that according to the motion filed in Manhattan federal court this week, JPMorgan Chase has agreed to pay $2.5 million to settle the lawsuit.

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 coin designed to make instantaneous payments using blockchain technology,” its website describes. “It is a digital coin representing United States dollars held in designated accounts at JPMorgan Chase N.A. In short, a JPM Coin always has a value equivalent to one U.S. dollar.”

Recently, it has also been reported that the bank now provides banking services to two bitcoin exchanges, Coinbase and Gemini. Meanwhile, JPMorgan Chase reported a 70% decline in profits in the first quarter as the bank expects the coronavirus-led economic crisis to worsen.

What do you think about JPMorgan’s $2.5 million settlement? 

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