BondIT, a leading fixed income fintech innovator, has filed a lawsuit against JPMorgan Chase Bank, alleging that the banking giant unlawfully abandoned a long-promised strategic partnership, breached binding contracts, and misappropriated BondIT’s proprietary AI and technology. The complaint, filed in New York Supreme Court’s Commercial Division, portrays a nearly two-year saga of promises, collaboration, and ultimately, abrupt termination by JPMorgan.

Alleged Breach of Trust and Misappropriation

According to BondIT, JPMorgan initiated the partnership after a competitive selection process and executed preliminary agreements, repeatedly assuring the fintech that a long-term strategic relationship and equity investment were imminent. Based on these assurances, BondIT invested thousands of engineering hours integrating its fixed income platform with JPMorgan systems, consistently earning top feedback from bank executives.

Despite this, BondIT claims JPMorgan abruptly terminated negotiations on the eve of closing a multilayered deal and commercial rollout. The fintech alleges that the bank misappropriated its trade secrets and proprietary AI to enhance JPMorgan’s internal offerings, exploiting the trust and access BondIT provided in good faith.

“No company should be able to induce another into expending its resources and sharing its IP for years under binding agreements and promises, only to flout legal obligations and walk away with the other enterprise’s technology without consequence,” said BondIT CEO Etai Ravid. “If left unchecked, undisclosed, and unpunished, this free-riding behavior will stifle innovation across the fintech ecosystem and chill ingenuity.”

The Stakes

BondIT estimates that the abandoned partnership could have generated roughly $100 million in annual revenues for JPMorgan. CEO Ravid emphasized that the decision came after a leadership shakeup within the bank, with new executives terminating the deal despite repeated assurances and praise for BondIT’s technology.

The lawsuit seeks damages, injunctions to prevent further use of BondIT’s technology, and other remedies, arguing that JPMorgan’s conduct exemplifies the unchecked leverage large financial institutions can exert over smaller innovators.

Industry Implications

If successful, the case could set a precedent for fintechs working with major banks, highlighting the importance of enforceable agreements and protecting proprietary technology during strategic negotiations. It also underscores broader tensions in the financial services industry, where startups increasingly provide specialized capabilities that banks may wish to adopt—or exploit—without formal partnerships.