JPMorgan Chase Agrees to Pay $2.5M for Crypto Fee Class Action
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28 May
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American multinational investment bank and financial services company JPMorgan Chase & Co has agreed to pay $2.5 million to settle a class action lawsuit.

In 2018, the financial conglomerate began treating purchases of cryptocurrencies with Chase credit cards as cash advances, and therefore charged higher fees.

Even though the bank is not admitting wrongdoing as part of the deal, it says the settlement would result in class members getting approximately 95% of the fees the plaintiffs were unlawfully charged.

JP Morgan Sees Risks for US Geopolitical Power in CBDCs

Brady Tucker, one of the plaintiffs, says such a high-percentage recovery stands far above the typical recovery for class actions such as this one.

Last year, JPMorgan Chase announced it will begin testing its pegged to the U.S. dollar stablecoin "JPM Coin" with the corporate clients.

The Head of JP Morgan’s blockchain development department, Umar Farooq, said that the corporate clients would take part in testing technology aimed at "speeding up transactions, in particular, payments between companies and transactions with bonds."

Several banks in the UK and the United States, including Lloyds Banking Group Plc, Virgin Money and Citigroup (NYSE: C), banned the use of credit cards to buy cryptocurrencies in 2018 after a dramatic fall in the value of bitcoin (EXANTE: Bitcoin).

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