Crypto News | J.P. Morgan Sued

In what many are calling the ultimate irony, J.P. Morgan Chase & Co, one of the largest financial institutions in the U.S., got hit with a class action lawsuit for charging unannounced fees to clients who used their credit cards to purchase cryptocurrencies. The bank did not disclose to its clients that it would treat such purchases as cash advances, which made the crypto purchases even more expensive due to interest on top of the fees. The lawsuit, filed on Tuesday in New York City in a federal court, claims that J.P. Morgan violated a number of laws, primarily the US Truth in Lending Act, which mandates that all banking and financial institutions need to disclose all the details and policy changes to their customers. The reason that got J.P. Morgan sued it the fact that they joined a wave of banks in February and banned its customers from buying cryptocurrencies with credit cards, but not before getting their fair share of the action. The plaintiff, Brady Tucker, claims that he was charged $143.30 in fees, plus $20.61 in interest – only in January and February.

Apart from the fact that we will see J.P. Morgan sued, according to an official announcement on Wednesday, Ripple made a large investment into Blockchain Capital Parallel IV LP venture fund, which is managed by Blockchain Capital. Ripple invested its own cryptocurrency, XRP, worth $25 million, to support startups, further develop the Blockchain space, and explore new use cases for its one platform and cryptocurrency. The company plans to make a number of other contributions very soon, hoping to become a major factor when it comes to shaping the future of the industry.

Telegram is another company that is already shaping up to become an industry leader, in spite of the fact that it is yet to hold a public ICO. Unfortunately, according to recent reports, the company may not have an ICO at all. And this is not because its ambitions project got scrapped. Quite the contrary, it is because its crypto project is too successful. Initially, Telegram planned to raise $1.2 billion by selling grams, its native tokens –and half of the money was supposed to be raised during an ICO open to the public. However, the company already exceeded its goals by a long shot, raising $1.7 billion in two private sales. Sources close to the company believe that raising money from the public may be too troublesome and “not worth it”. The TON network is still not built, which means that selling grams is bound to cause some legal controversies and hurdles. Additionally, after an ICO, Telegram would have to dedicate a lot of resources to reviewing and potentially implementing suggestions and changes proposed by its many loud shareholders.


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Author: Max Rothstein

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