Several clients of one of the largest banks in the world decided to settle a lawsuit with JPMorgan Chase Bank. Everything started in April 2018 when Brady Tucker filed the suit against the bank. However, the investment bank wanted to dismiss the case. Tucker filed an amended compliant alongside Ryan Hilton and Stanton Smith.
According to JPMorgan Chase Bank, cryptocurrency purchases compromised “cash-like transactions.” This was the position of JPMorgan Chase during a previous hearing. Also, crypto purchase compromise “cash-like transactions” as per its terms of service. Thus, it did not breach its contract with cardholders.
It is worth mentioning that the bank also claimed that the adjusted fee schedule was the result of Coinbase changing its merchant category code. Coinbase changed its code from “purchases” to “cash advances.”
JPMorgan Chase and crypto industry
As stated above, JPMorgan Chase Bank settled a crypto-related lawsuit. Major U.S. bank settled a lawsuit connected with unannounced changes made to the fee structure applied to cryptocurrency purchases made using its credit cards in 2018.
Ryan Hilton, and Stanton Smith, claimed that Chase Bank violated its cardholder terms of service during January 2018.
Moreover, plaintiffs asserted that JPMorgan Chase Bank introduced the fee structure for cash advances to cryptocurrency purchases without providing any warning as to the change.
In August 2019, Judge Failla ruled that the plaintiffs proved that “cash-line transactions” referred only financial institutions tied to fiat currency such as traveler’s check and cash.
According to the trio, they represented a class of potentially thousands of Chase Bank clients impacted by the unannounced changes. The plaintiffs asked for a full refund of all charges wrongfully incurred in addition to $1 million in statutory damages.
Both sides have 75 days to submit their stipulations of settlement.
In February, JPMorgan Chase published a report regarding the development as well as the state of the blockchain industry. Based on this report, the industry is developing, but mainstream blockchain adoption is still many years away.