JPMorgan Chase Takes Legal Action Against Additional Customers Accused of Cash Theft in ‘Endless Money Scheme’
A person uses an ATM at a Chase bank in New York City on November 19, 2024. Charly Triballeau | AFP | Getty Images.
JPMorgan Chase has recently intensified its legal actions against customers accused of misappropriating funds during last year’s so-called infinite money glitch. The bank is now pursuing clients who allegedly stole amounts under $75,000, opting to file complaints in state courts rather than federal courts, as it did previously, according to an insider familiar with the bank’s strategy.
The glitch, which gained significant attention in late August through social media, permitted customers to withdraw the full amount 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 stated in a lawsuit filed on Tuesday afternoon in Gwinnett County, Georgia. By the time the check bounced six days later, cash withdrawals totaling $82,500 had occurred at two Chase branches in the state, as reported by the bank.
The accused individual, whose name remains undisclosed, owes the bank $57,847.69 and has not responded to requests for repayment, per the lawsuit. In addition to the Georgia case, the bank is pursuing lawsuits in state courts in Miami; the Bronx, New York; and two Texas counties, noted the source who preferred not to be named discussing the bank’s plans.
This situation underscores JPMorgan’s commitment to recovering owed funds and discouraging future misconduct. The bank has evaluated thousands of potential cases, focusing on the largest amounts with clear patterns of theft, the insider revealed.
Moreover, since October, the bank has sent letters to more than 1,000 customers requesting repayment, with some individuals voluntarily returning funds after news of the bank’s actions spread, according to the individual.
The lawsuits are distinct from any potential criminal cases that both federal and state law enforcement may be investigating, the bank clarified. “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, remarked.
As for bankruptcy considerations, JPMorgan is also contemplating opposing the bankruptcy filings of those involved in the alleged “infinite money” fraud. In a recent motion filed in bankruptcy court in Grand Rapids, Michigan, the bank requested additional time to contest the customer’s efforts to discharge their debts. The bank holds an unsecured claim stemming from actions taken by the debtor, who allegedly deposited a fraudulent check for $44,779.46 and then made numerous cash withdrawals on August 30, 2024, alongside various Cash App transactions to themselves.
“There are genuine and important reasons people use bankruptcy protections,” Pusateri stated. “Getting rid of debts you accumulated through fraud isn’t one of them.”
