In 2018, JPMorgan Chase, one of the world’s largest banks decided to treat cryptocurrency purchases made via credit cards as cash advances, which resulted in extravagant fees. The purchase of cryptocurrencies was then banned by the bank in February of that year.
As a result, a class-action lawsuit was launched against the bank in the name of the plaintiffs: Brady Tucker, Ryan Hilton, and Stanton Smith. Their claims was against the extremely high ad unjustified fees being charged by the bank for crypto-purchases.
The bank explained that purchasing cryptocurrencies were “cash-like” transactions while the plaintiffs showcased to the judge that this was only applicable to fiat currencies; which the judge was convinced by.
It was only two years later that the bank agreed to a settlement agreement. The latter stated that JPMorgan Chase will repay 95% of these “unlawfully charged fees”, equivalent to $2.5 million but does not assume any wrongdoing.
Crypto-Critic to Crypto-Servicing
JPMorgan’s CEO, Jamie Dimon, was a very outspoken critic of cryptocurrencies in 2017. This resulted in the overall image of the firm to be ‘anti-crypto’. The lawsuit and the extravagant fees charged in 2018, also fall in line with that perception.
However, as the years went by and crypto-businesses (especially exchanges) started generating sky-high revenue from increased interest, the bank decided to start servicing their fiat needs. This has thus far taken place with two famous crypto-exchanges: Coinbase & Gemini.