Chase, KeyBank, Others to Pay Ponzi Scheme Victims $3.75 Million

Three banks and a financial software company that remain as defendants in a lawsuit over a cryptocurrency-based Ponzi scheme have agreed to pay a total of $3.75 million to resolve class claims on behalf of victims.

The proposed settlement by JPMorgan Chase, KeyBank NA, Columbia Banking System Inc., and Intertrust Corporate & Fund Services LLC warrants preliminary approval, the plaintiffs told the US District Court for the District of Oregon Thursday.

Chase, KeyBank, and Columbia—the parent of Umpqua Bank—will each chip in $1 million, the parties agreed. Intertrust will pay $750,000.

The agreement follows a $90,000 settlement by ...