JPMorgan Bank Punished for Overcharging Cryptocurrency Purchases

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Multinational banking companies like JPMorgan or Goldman Sachs don’t want you to invest in Bitcoin and crypto-assets. JPMorgan even charged their bank customers illegally high fees for buying cryptocurrencies. They just agreed to pay $ 2.5 million in compensation to avoid maybe higher fines.

JPMorgan did everything to discourage the purchase of cryptocurrencies

There is no shortage of examples of bad faith or even outright hostility from banks towards cryptocurrencies. Yesterday, we learned that Goldman Sachs published a document listing several reasons why bitcoin and cryptocurrencies are ‘not an asset class’, and why cryptocurrencies are not ‘a suitable investment.

Today, it is the other international mega-bank – JPMorgan Chase – which is punished for overcharging its customers, who had bought cryptocurrencies using their “Chase” bank card.

JPMorgan has agreed to pay $ 2.5 million in compensation to its customers to close their class action. The bank wants to avoid a long trial, and a possible even heavier punishment.

A victorious class action after two years of struggle

In 2018, faced with “crypto mania” which had previously led Bitcoin to $ 20,000, several banks had decided to prohibit their customers from buying cryptocurrencies by bank card. And obviously, in the case of JPMorgan, if purchases by CB were theoretically possible, the costs involved were more than prohibitive.

According to Finance Magnates, Brady Tucker, one of the complainants, was charged an additional $ 160. By calling the bank to complain, it turned out that the fees were linked to five transactions to purchase cryptocurrencies by CB, carried out between January 27 and February 2, 2018.

Customer service refused its request to contest the costs at the time, Tucker and other customers filed a class action, filed the same year. It was this recourse that led the bank to finally capitulate.

Customers will be reimbursed about 95% of the costs to them were illegally charged.

JPMorgan is one of the few banks that have significantly softened their behavior towards cryptocurrencies. It has its own crypto – the JPM Coin – and has recently included the crypto exchanges Coinbase and Gemini among its clients. The majority of other banks still pose various obstacles to investors or professionals in the crypto sector.

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About Author

Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

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