One of the world’s largest remittance companies has released a statement detailing the recent turmoil between Ripple and the U.S. Securities and Exchange Commission (SEC) over a lawsuit brought by the regulator against the crypto company.
Moneygram distances itself from Ripple in the middle of the US SEC lawsuit
According to the official statement, Remind Moneygram that its partnership with the blockchain firm does not include the use of the ODL platform or Ripplenet for direct transfer of consumer funds, “digital or otherwise.” They also added that “Moneygram is not a party to the SEC action.”
Regarding the current status of the commercial agreement between both parties, the remittance company noted:
The company has not currently been made aware or made aware of any negative impact on its commercial agreement with Ripple, but will continue to monitor for potential impact as developments in the lawsuit evolve. Moneygram has had a commercial agreement with Ripple since June 2019.
They clarified that one such agreement involved Ripple’s blockchain trading platform in its existing four-currency cross-border payment solution. However, Moneygram specified:
Moneygram has continued to use its other traditional counterparties in FX trading for the duration of the agreement with Ripple and does not rely on the Ripple platform to meet its FX trading needs.
Recent moves in the Ripple – Moneygram relationship
On November 29, 2020, Ripple Inc. announced the sale of 4 million of its shares in Moneygram, representing approximately one third of its total equity interest in the company. At the time, the decision seemed to be prompted in part by Moneygram’s surging stock price and Ripple’s desire to pay out after buying the stock at a premium of $ 4.10 in 2019.
Such as news.Bitcoin.com reportedthe U.S. SEC has taken legal action against Ripple, its CEO, Brad Garlinghouse, and co-founder Christian Larsen, alleging they have participated in an ‘unregistered, ongoing offering of digital asset securities’ to investors since 2013 through his XRP token – a claim rejected by the blockchain company.
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