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   776

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.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   119

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.