After allegedly overcharging fees on crypto purchases two years ago, JP Morgan Chase Bank has succumbed that it would settle a class-action lawsuit worth $2.5M towards its crypto fee overcharge case. It unduly billed clients carrying out crypto transactions.
The bank lawyers, Brady Tucker, Ryan Hilton, and Stanton Smith, notified the U.S court in March that they would settle the customers. The settlement was made possible by an order Judge Katherine Polk Failla signed at that time.
Reportedly, JP Morgan agreed that settling clients of the crypto fee overcharge was the right thing to do as those affected would get 95 percent of the previously-paid fees refunded. In the case made against JP Morgan, the defendants claimed that using a credit card to buy crypto was improperly billed.
Contained in the charge against the bank was clients request fort $1M be paid to customers who were affected, but now with JP Morgan agreeing to settle them, the bank would pay above the requested settlement amount.
Why JP Morgan’s agrees to $2.5M crypto fee overcharge
Although Jamie Dimon, JP Morgan Chase CEO, happens to be one who is not a fan of crypto and vocally condemns the digital asset, however, there are gathering reports about a book soon to be published about how Brian Armstrong, Coinbase CEO secretly meet with Dimon since 2018.
According to a court statement, the bank wants to pay the $2.5M crypto fee overcharge to shun any future expenses and protracted litigation, among other reasons. Hence, it will help them to be free of any future charge.
The first charge against the bank two years ago, when they were allegedly charged by Tucker, for $160 as the fee for regular crypto purchase from Coinbase with his card.
JP Morgan changing stance on cryptos
Prashant Singh, an Executive director at JP Morgan, also testified that between 2015 and the date of his declaration, the bank accessed $2,567,252 in cash advances from credit card holders who were said to be a potential crypto merchant.
Just as the bank CEO is known to be a crypto critic who is possibly beginning to change that thought, the bank also is changing its position on crypto. Weeks back, JP Morgan Chase bank approved accounts for Coinbase and Gemini exchange. The bank also now has its own JPM Coin Stablecoin.