One of the largest money transfer companies in the world has issued a statement on recent unrest between Ripple and the United States Securities and Exchange Commission (SEC) over a lawsuit filed by the regulator against the company. cryptography.
Moneygram breaks away from Ripple amid US SEC lawsuit
According to the official statement, Moneygram emphasized that its collaboration with the blockchain company does not involve the use of the ODL platform or Ripplenet for the direct transfer of consumer funds, “digital or otherwise”. In addition, they added that “Moneygram is not a party to the action of the SEC.”
Regarding the current state of the trade deal between the two parties, the remittance company commented:
The company has not currently been notified or notified of any negative impact on its business deal with Ripple, but will continue to monitor any potential impact as the lawsuit progresses. Moneygram has entered into a business agreement with Ripple since June 2019.
They clarified that such a deal involved Ripple’s foreign currency blockchain trading platform in its existing cross-border payments solution for four currencies. However, Moneygram clarified:
Moneygram continued to use its other traditional FX trading counterparties for the duration of the agreement with Ripple, and does not rely on the Ripple platform to meet its FX trading needs.
Recent Movements 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 stake in the company. At the time, the move seemed to be driven in part by the surge in Moneygram’s share price and Ripple’s desire to cash in after buying the shares at a premium of $ 4.10 in 2019.
As reported by news.Bitcoin.com, the US SEC has taken legal action against Ripple, its CEO, Brad Garlinghouse, and co-founder Christian Larsen, because the regulator alleges it participated in an “offering of securities in ‘unregistered and current digital assets’ for investors since 2013 via its XRP token – a claim denied by the blockchain company.
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