JPMorgan Chase Targets Customers in State Courts Over “Infinite Money” Glitch

JPMorgan Chase has escalated its legal campaign against individuals who exploited the 2024 “infinite money glitch,” a viral incident that enabled customers to access funds from fraudulent checks before they bounced. The bank has begun filing lawsuits against those accused of stealing amounts under $75,000, choosing state courts for these smaller claims instead of the federal courts it used in earlier cases. This new strategy reflects the bank’s broadened focus as it continues to pursue a wide range of participants in the scheme.

The glitch, which gained attention on social media in late August 2024, allowed individuals to withdraw large sums of money from their accounts by depositing fake checks and accessing the full amount before the checks were rejected. In one case filed this week in Gwinnett County, Georgia, a masked individual deposited a $73,000 check on August 29, 2024. Within six days, withdrawals totaling $82,500 were made from Chase branches before the check ultimately bounced. The bank now seeks to recover $57,847.69 from the account holder, who has not responded to repayment requests.

Lawsuits have also been initiated in other locations, including Miami, the Bronx in New York, and multiple counties in Texas. These cases underscore JPMorgan’s determination to reclaim lost funds and send a message about the consequences of financial fraud. The bank reportedly reviewed thousands of cases and chose to pursue those involving the most substantial losses and the clearest evidence of wrongdoing.

Since October 2024, the bank has sent repayment demand letters to over 1,000 customers, prompting some individuals to voluntarily return the funds. These civil lawsuits are distinct from potential criminal proceedings being handled by state and federal authorities.

In addition to civil litigation, JPMorgan is pushing back against attempts by accused fraudsters to discharge their debts through bankruptcy. In one recent motion filed in bankruptcy court in Grand Rapids, Michigan, the bank asked for more time to contest a customer’s effort to wipe out debts linked to a $44,779.46 fake check and subsequent withdrawals, including through Cash App transactions.

A bank spokesperson emphasized that while bankruptcy protections serve a legitimate purpose, they should not be used to escape liability for fraud-related debts. JPMorgan says it remains committed to investigating each case thoroughly and working with law enforcement to hold offenders accountable.

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