Home / Crypto Currency / Irony Alert: JPMorgan Gets Sued for Bitcoin Fraud

Irony Alert: JPMorgan Gets Sued for Bitcoin Fraud


JP Morgan Blockchain Fintech

Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

If Jamie Dimon didn’t believe in karma before, he may be a believer now.

JPMorgan has been hit with a class-action lawsuit on allegations of tacking on unannounced layers of fees plus interest after pulling the rug out from under the feet of cryptocurrency investors, according to a Reuters report. No wonder the decentralized revolution is upon us.

The bank put the kibosh on credit card purchases for cryptocurrencies earlier this year when it also sparked controversy by treating crypto purchases as cash advances, the latter of which command higher fees. JPMorgan CEO Jamie Dimon infamously called bitcoin a fraud a while back, and now those words are coming back to haunt him.

The plaintiff, Brady Tucker, is from Idaho and the lawsuit was filed in a New York court. He alleges that JPMorgan charged additional layers of fees and much higher interest on the cash advances versus what they charge for credit card purchases. Customers cried foul, but the bank refused to budge.

A Chase spokesperson told Reuters that while the bank placed a ban on credit card purchases for bitcoin and altcoins, they did so “because of the credit risk involved” and pointed out that customers could still use their checking account-linked debit cards for purchases and bypass fees. JPMorgan wasn’t the only bank to ban credit card use for bitcoin, as Bank of America, Citi and others took similar action amid a pullback in the bitcoin price in the new year.

Meanwhile, the Plaintiff is fighting back after being charged these extra fees, including more than $140 in “fees” and another $20-plus in sudden interest charges tied to nearly half-a-dozen transactions right about the same time Chase implemented the ban.

According to the lawsuit, there are “hundreds” and “possibly thousands” of other Chase customers who were similarly met with these unexpected fees in their accounts. While the suit may be about the fees, it wouldn’t be surprising to learn that it’s also about the principle.

‘Stuck It to Him’

Before turning to the law, Tucker reached out to JPMorgan Chase’s customer service and afforded them the chance to remove the charges, to no avail. Instead, the lawsuit says the bank “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it.”

Tucker’s attorneys are arguing a violation of the US Truth and Lending Act, which is designed to protect consumers from “unfair credit billing and credit card practices.” It also says that financial institutions must inform customers of any changes to the terms in writing.

The class action lawsuit is seeking damages of $1 million.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement
Read more

Check Also

Binance Freezes Nano Deposits due to “Blockchain Issues”

In the world of cryptocurrency, there are always some developments taking place. For Binance, it seems the company halted Nano deposits starting yesterday. According to a company representative, the wallet maintenance is delayed due to “blockchain issues”. It is not the first time Nano faces such issues, although the matter is usually resolved fairly quickly. The past year has been interesting for the Nano cryptocurrency. Originally known as Raiblocks, the project rebranded to Nano several months ago. However, there have been pretty worrisome issues with this project’s “blockchain” in the past. On most of those occasions, the network would briefly grind to a halt and transactions couldn’t be processed any further. Binance Blames Nano for the Issues It appears history is repeating itself as we speak. Yesterday, Binance temporarily disabled deposits of this altcoin because of ongoing “blockchain issues”. More specifically, it is unclear what caused the problem exactly. Even so, the Binance team is working together with the project’s developers to resolve those issues as quickly as possible. It is possible this is another side effect of the “immaturity” of Nano as a whole. Even so, there needs to be some sort of official communication as to what is happening to the network exactly. For some reason, the developers have not issued any official comment regarding this problem. So far, the Nano community seems to be divided on this front. Some users are convinced Binance is to blame for these issues rather than the other way around. Whether or not that is effectively the case, remains to be determined. It is a very problematic development either way, yet one that will hopefully be resolved soon. Header image courtesy of Shutterstock The post Binance Freezes Nano Deposits due to “Blockchain Issues” appeared first on Bitcoin Network, News, Charts, Guides & Analysis.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.