December 10, 2023

JPMorgan reaches agreement with plaintiffs on cryptocurrency commissions

JPMorgan Chase reached a settlement with plaintiffs in a case involving changes to fees that wereapplied to cryptocurrency purchases in 2018.

Sixth largest bank in the world JPMorgan Chasereached an agreement with plaintiffs Brady Tucker, Ryan Hilton and Stanton Smith in a case of violation of the conditions of service for cardholders in January 2018. Details of the agreement are not published.

The plaintiffs claimed that the bank without warningapplied cash advance commissions to cryptocurrency purchases made with JPMorgan Chase credit cards. In a previous hearing, the bank tried to prove that cryptocurrency purchases include “cash-like transactions” in accordance with the bank’s rules, and the terms of service for cardholders were not violated

However, in August, the judge ruled that the plaintiffsdemonstrated a credible interpretation of what could be considered “cash-like”. The plaintiffs convinced the judge that this applies exclusively to financial instruments tied to fiat currency, such as traveller's checks, money orders, and cash. The bank also claimed that the adjusted commission was the result of the Coinbase cryptocurrency exchange changing the trading code from “purchase” to “cash advance”.

Tucker originally filed a lawsuit in April 2018. After the bank demanded termination in July 2018, Tucker filed a revised complaint with Smith and Hilton. The plaintiffs claimed full reimbursement of all wrongfully incurred expenses and $ 1 million in compensation for the damage. The parties now have 75 days to implement the terms of the settlement, otherwise the plaintiffs can apply for the resumption of litigation.

This is not the first time cryptocurrency usersface problems when making transactions in large banks. The other day, a client of BNP Paribas announced that the bank is blocking customer transactions on the Coinbase cryptocurrency exchange. Two years ago, the Bank of Montreal, one of the largest banks in Canada, began to block cryptocurrency transactions of its customers with debit and credit cards, as well as through online banking.

Last summer, messages appeared on Redditthat transfers from Santander bank accounts do not go to the Coinbase cryptocurrency exchange. It turned out that the bank did not block the site, but checked the payments.