JPMorgan Chase (JPM) and Citigroup (C) were sued by China's HY Energy over alleged failure of funds transfer, Bloomberg reported Thursday.

The Chinese energy firm sued Citibank in Shanghai in February, alleging that the Wall Street bank did not complete a July 2023 funds transfer of $27 million, the news outlet said, adding that China Oil and Petroleum, the recipient of the funds, reported it never received the payment.

Citibank informed HY Energy in May 2024 that the payment had been released to the US Treasury Department's Office of Foreign Assets Control, according to Bloomberg.

Similarly, HY Energy also sued JPMorgan in a Beijing court in March, alleging that the bank failed to complete a $13.5 million funds transfer to China Oil and Petroleum, Bloomberg said. The firm received a SWIFT message in May 2024 from the bank stating that the funds were frozen under the Office of Foreign Assets Control requirement.

HY Energy argued that the recipient was put on the regulator's Specially Designated Nationals list in February 2024 but the funds were blocked in mid-2023, Bloomberg said.

The banks did not immediately respond to MT Newswires' requests for comment, while HY Energy could not be immediately reached.

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