Client to Sue JP Morgan Due to Big Crypto Purchase Fees

Plantiff used credit card to buy cryptocurrency on Coinbase and faced "sky-high" fees
12 April 2018   711

One of JPMorgan Chase client offiled a lawsuit against the bank, in which the financial holding company is accused of levying "astronomical" commissions and percents for purchasing cryptocurrency using credit cards. According to plaintiff Brady Tucker, the organization backdating began to classify the purchase of digital assets as a cash withdrawal, reports Bloomberg.

According to Tucker, since January 2018 the bank began treating his cryptocurrency buys as cash advances instead of purchases, and charging him interest rates of as much as 30 percent a year and additional fees. This led to the fact that the client of JPMorgan faced commissions around 30%.

The suit also cites the words of the executive director of JPMorgan, who last year called bitcoin "fraudulent" and promised to fire out of his company any "stupid" trader who bought or sold digital assets.

It appears that in addition to firing its ’stupid’ employees, Chase elected to start fining its ‘stupid’ customers: unilaterally.
 

Brady Tucker

Chase credit-card customer in Idaho, plantiff

A resident of Idaho hopes that his suit in the federal court of Manhattan will get the status of a group one. Tucker requires the bank to return all accrued commissions, as well as compensation in the amount of $ 1 million. JPMorgan Chase representatives have not yet commented on the situation.

According to Tucker, he was a regular customer of the Coinbase exchange, where he bought cryptocurrency with a credit card, and always conscientiously paid the credit.

Chase silently smacked them with instant-cash-advance fees, plus much higher interest rates than normal, and left them without any recourse.
 

Brady Tucker

Chase credit-card customer in Idaho, plantiff

The plaintiff also added that he and many other customers used credit cards to buy cryptocurrency exclusively because the transaction could be made instantly. At the same time, when using the bank account number for processing operations, it could take several days, Tucker noted. He also said that the bank did not notify him of any changes in the policy, otherwise he would stop using the credit card.

It is noted that only for the first two months of this year, the bank charged Tucker commission of $ 143, as well as another $ 20.61 as percents. When the plaintiff rang to sort out the situation, JPMorgan employees  blame Coinbase.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   346

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.