JP Morgan Chase Set to Pay $2.5 Million in Crypto Class-Action Lawsuit for Overcharging
The largest bank in the United States, JP Morgan Chase has agreed to pay $2.5 million to settle a class-action lawsuit related to charging higher fees in crypto transactions, reported Reuters on Thursday.
The lawsuit was over the bank’s 2018 decision to start treating the cryptocurrency purchases made with Chase credit cards as cash advances that result in higher fees for crypto customers.
As per the motion filed in Manhattan federal court on Tuesday, plaintiffs said the settlement would result in the members getting 95% of the fees that they were unlawfully charged. JP Morgan will be paying the fees but hasn’t admitted the wrongdoing.
While Jamie Dimon, the CEO of the sixth-largest bank in the world by total assets called bitcoin a “fraud,” JP Morgan launched a stablecoin dubbed “JPM Coin” last summer.
The bank has even released its own blockchain platform called Quorum. Open-sourced in 2016, this Ethereum-based blockchain is designed for processing transactions within a permissioned network to solve performance and privacy challenges.
This week, another banking giant Goldman Sachs made headlines in the crypto space after it shared in its clients’ call that “bitcoin is not an asset class,” while categorizing it as nothing better than Tulipmania which is used for illicit activities and is prone to attacks and hacks.