JPMorgan pays $2.5 million for crypto class-action lawsuit. The firm has allegedly agreed to pay $2.5 million to settle a crypto class-action lawsuit.
The suit originally filed in 2018, alleges that the bank overcharged customers for buying cryptocurrencies using Chase credit cards, classifying the purchases as cash advances which carry higher fees than normal purchases.
A class-action lawsuit originally filed in 2018 was settled out of court in March this year. As part of the deal, JPMorgan Chase is not admitting to the wrongdoing. According to the motion filed in Manhattan federal court this week, JPMorgan Chase has agreed to pay $2.5 million to settle the lawsuit.
The motion noted that “Plaintiffs said the settlement would result in class members getting about 95% of the fees they said they were unlawfully charged.”
Brady Tucker, one of the plaintiffs claimed that JPMorgan violated the Truth in Lending Act as the bank did not inform customers that cryptocurrency purchases were being treated as cash advances. This classification resulted in higher fees charged to customers. In his complaint, Tucker explained that the bank charged him more than $160 in fees and interest for regularly purchasing cryptocurrencies from Coinbase with his credit card and refused to refund the charges.