JPMorgan Sued for Bitcoin Fraud

Bitcoin now makes up more than half of all online gambling transactions but the cryptocurrency continues to take a hit on the public front between regulatory crackdowns and lawsuits.  On Wednesday it was revealed that JPMorgan has been hit with a class action in a Manhattan court for alleged bitcoin fraud.

Bookmaker accepts most crypto-currencies

Reuters broke the story Wedesday afternoon.  The filing occurred on Tuesday with Idaho resident Brady Tucker name as the plaintiff.  He claims to have been hit with $143.30 in fees and $20.61 in surprise interest charges by Chase for five cryptocurrency transactions between Jan. 27 and Feb. 2, his lawsuit said.

The investment banking firm is  accused of charging surprise fees when it stopped letting customers buy cryptocurrency with credit cards in late January and began treating the purchases as cash advances.

Chase spokeswoman Mary Jane Rogers declined to comment on the lawsuit but said the bank stopped processing credit card purchases of cryptocurrency on Feb. 3 due to potential risks involved. Customers can use their Chase debit cards to buy cryptocurrency from their checking accounts without incurring cash advance charges, she said.

Bitcoin has fallen in value by more than half from a peak of almost $20,000 in December amid concerns about regulatory crackdown.

- Aaron Goldstein, Gambling911.com