A lawsuit filed by the regulator against the crypto company led to one of the world’s largest remittance companies issuing a statement addressing the recent turmoil between Ripple and the US Securities and Exchange Commission (SEC).
MoneyGram distanced itself from Ripple in the midst of a US SEC lawsuit
According to the official statement, MoneyGram reported that its collaboration with the blockchain firm did not involve using the ODL platform or Ripplenet for the direct transfer of consumer funds, “digital or otherwise.” Furthermore, he stated that “MoneyGram is not a party to SEC action.”
On the current status of the commercial agreement between the two parties, the remittance company commented:
The company is not currently informed or informed of any negative impact to its commercial agreement with Ripple, but will continue to monitor any potential impact in the development of the lawsuit. MoneyGram has entered into a commercial agreement with Ripple from June 2019.
He clarified that such an agreement included a cross-border payment solution for the four existing currencies in Ripple’s foreign exchange blockchain trading platform. However, MoneyGram is specified:
MoneyGram has continued to use its other traditional FX trading counterparts throughout the term of the agreement with Ripple, and does not rely on the Ripple platform to meet its FX trading needs.
Recent steps in wave – MoneyGram relationship
On November 29, 2020, Ripple Inc. announced the sale of its 4 million shares in MoneyGram, representing one-third of the total stake in the company. At the time, the decision seemed in part to be motivated by the desire to cash the MoneyGram share price and wave after buying the shares at a premium of $ 4.10 in 2019.
As reported by news.Bitcoin.com, the US SEC took legal action against Ripple, with its CEO Brad Garlinghouse and co-founder Christian Larsen alleging as a regulator that they “offered unregistered, ongoing digital asset securities” “Has participated in investors since 2013 through its XRP token – a claim that was denied by the blockchain company.
What are your thoughts on the MoneyGram statement? Let us know in the comments section below.
Image credit: Shutterstock, Picabee, Vicky Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services or companies or a recommendation or endorsement. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company is responsible, nor is the author, directly or indirectly, for the purpose of or loss of use or reliance on any of the materials, goods or services mentioned in this article.