Posted on 04/16/2025 7:36:18 AM PDT by Red Badger
Key Points
JPMorgan Chase this week began suing more customers it has accused of stealing funds from the nation’s largest bank in last year’s so-called “infinite money glitch.”
The bank is now going after customers who allegedly stole amounts below $75,000, which means it is filing complaints in state courts, instead of the federal venues it chose last year.
The bank has also sent letters to more than 1,000 customers demanding they repay funds since October.
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JPMorgan Chase this week began suing more customers it has accused of stealing funds from the nation’s largest bank in last year’s so-called “infinite money glitch.”
The bank is now going after customers who allegedly stole amounts below $75,000, which means it is filing complaints in state courts, instead of the federal venues it chose last year, according to a person with knowledge of the company’s deliberations.
The glitch, which went viral in late August in videos posted to social media, allowed customers to withdraw the entire value of a fraudulent check before it bounced.
″On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $73,000.00,” the bank said in a suit filed Tuesday afternoon in Gwinnett County, Georgia.
By the time the check bounced six days later, a series of cash withdrawals at two Chase branches in the state totaling $82,500 had been made, according to the bank.
The accused, whose name is being withheld by CNBC until she can respond, owes the bank $57,847.69, and hasn’t complied with requests to return the funds, according to the lawsuit.
Besides the Georgia case, the bank is filing lawsuits in state venues in Miami, Florida; the Bronx, New York; and two Texas counties, said the person, who declined to be identified speaking about the bank’s plans.
The episode highlights the lengths JPMorgan will go to to claw back funds it is owed and to deter future crimes. The bank looked at thousands of potential cases, choosing to litigate the largest amounts with the clearest pattern of theft, said the person familiar.
The bank has also sent letters to more than 1,000 customers demanding they repay funds since October, this person said. Some people returned money on their own after CNBC reported in October that the bank was going after potential fraudsters who had drawn down the largest amounts, said the person.
The lawsuits are separate from potential criminal cases that both federal and state law enforcement may be pursuing, according to the bank.
“We’re still investigating cases of fraud and cooperating with law enforcement — and we’ll do that for as long as it takes to hold fraudsters accountable,” Drew Pusateri, a spokesman for the New York-based bank, said in a statement.
Bankruptcy shield?
JPMorgan is also considering pushing back against the bankruptcy filings of alleged “infinite money” fraudsters.
In one of the bank’s motions made this week in bankruptcy court in Grand Rapids, Michigan, the company asked a judge for more time to object to the customer’s attempt to discharge his or her debts.
The bank is the “holder of an unsecured claim” that resulted from “actions taken by the Debtor to deposit a fraudulent check in the amount of $44,779.46 to which the Debtors immediately made numerous cash withdrawals on August 30, 2024 as well as various Cash App transactions to himself,” the bank alleged.
“There are genuine and important reasons people use bankruptcy protections,” JPMorgan’s Pusateri said. “Getting rid of debts you accumulated through fraud isn’t one of them.”
I’m not sure how this is working at Chase, because Chase doesn’t give me the full amount of the deposited check for immediate use, depending on the current amount in the account. They basically give what the account can currently cover, until the check clears.
(″On August 29, 2024, a masked man deposited a check in Defendant’s Chase bank account in the amount of $73,000.00,” the bank said in a suit filed Tuesday afternoon in Gwinnett County, Georgia.
By the time the check bounced six days later, a series of cash withdrawals at two Chase branches in the state totaling $82,500 had been made, according to the bank.)
WOW
Where was Leonardo?
“”so-called “infinite money glitch.””
What is a money glitch? Can you explain? I don’t understand any of it.
My bank puts a hold on withdrawals until the check clears..........or not..........
People were allowed to withdraw more money that they had in their accounts................
They insist they're credible and their words have weight but they refuse to pay for talent who could figure out how something could go wrong.
They're reactionary, not proactive, like amateurs.
The biggest complaint at banks is “Why does it take so long for my deposit to show up?”. This is why.
They are 'Ivy League' grads.................
If I take a check to Sam’s to pay my monthly bill, they use Electronic Transfer, scan the check, then hand it back to me and the money immediately goes from my account to Sam’s.
Looks like banks could do that. But I guess they are too cheap to buy the equipment necessary........................
So much for those bazillion Cash App
ads that ran during my phone 📱 games
An individual not having the resources of a JPMorgan who was a “holder of an unsecured claim” would be told to go to Helen Hunt for their funds.
Who needs ‘Cash App’ when you have unlimited withdrawals!
Looks like Chase would spend more in legal fees that they would get back in recovered funds...............
“”so-called “infinite money glitch.””
What is a money glitch? Can you explain? I don’t understand any of it.
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Failure of the bank to operate in a sound fashion. Pretty simple.
Was this one of the banks shutting down business with conservatives?
Not her - try again. Hint: it’s a play on words. Say the last part of my post out loud.
She must have taken over Helen Waite’s old job.
JPMorgan fined nearly $40 billion for two-decade legal oversights
JPMorgan Chase and Bank of America denied the debanking claims................
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