Buying Crypto on Credit Not Necessarily a Cash Advance

Southern District of New York Judge Katherine Polk Failla has ruled that purchasing cryptocurrency with a Chase Bank credit card does not necessarily count as a cash advance, as per Chase’s contract.

According to an opinion and order document dated August 1, Judge Failla has denied Chase’s motion to dismiss a number of the plaintiff’s complaints, which center on the bank charging a user cash advance fees for buying cryptocurrency with a Chase credit card.

The plaintiffs are Brady Tucker, Ryan Hilton and Stanton Smith, who have brought a class action suit against banking giant Chase.

In the document, Failla summarized their class action suit as follows:

“This claim — indeed, the entirety of Plaintiffs’ suit — is built on an argument that acquisitions of cryptocurrency could not be classified as cash advances within the meaning of the Contracts. […] Chase disagrees, claiming that cryptocurrency acquisitions are ‘cash-like transactions’ pursuant to the Contracts, and…