JPM Chase Bank affiliate to reimburse $ 2.5 million to crypto users
Key points to remember
- Chase Bank will reimburse users who have been wrongly charged a “cash advance” fee when purchasing cryptocurrency.
- The bank will reimburse 95% of the $ 2.5 million it charged.
- JP Morgan remains heavily involved in the blockchain industry.
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Chase Bank, a subsidiary of JP Morgan, has accepted reimburse $ 2.5 million in overcharged fees related to cryptocurrency transactions.
Chase Bank lawsuit is over
The decision to reimburse customers is the result of a class action lawsuit that concluded in Manhattan federal court this month.
Since 2018, Chase Bank has reportedly charged crypto users over $ 2.5 million in unnecessary fees.
This is because the bank viewed cryptocurrency purchases as “cash advances”. A lead applicant claims he was charged over $ 160 in fees and interest after using his credit card to buy cryptocurrency from Coinbase.
A judge ruled that Chase Bank’s classification was incorrect, ruling that the plaintiffs had shown that the term “cash advances” only applied to fiat money, and not to cryptocurrency-related activities.
While Chase Bank does not need to admit wrongdoing as part of the settlement, it will refund users 95% of the fees it charged.
JP Morgan & Cryptocurrency
JP Morgan CEO Jamie Dimon has been famous for his criticism Bitcoin and went so far as to call the cryptocurrency a “fraud”.
However, the company itself has built a reputation as one of the most blockchain-focused banks. Its corporate blockchain (Quorum) and its stablecoin (JPM Coin) are two of its most well-known crypto projects.
JP Morgan also announced that it has entered into a relationship with two main crypto exchanges: Coinbase and Gemini. The bank would apparently process some fiat transactions for these platforms.
Meanwhile, supporters of decentralization argue that the involvement of JP Morgan and other banks undermines Bitcoin’s real purpose: a currency system free from oversight and regulation.
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