Moneygram Distances Itself From the Ripple Turmoil With the US SEC

0
45

One of the world’s largest remittance companies issued a statement referring to the recent turmoil between Ripple and the US Securities and Exchange Commission that the regulator has filed against the crypto company.

Moneygram distances itself from Ripple in the middle of the US SEC process

According to the official statement, Moneygram indicated that the collaboration with the blockchain company does not involve using the ODL platform or Ripplenet for direct transfer of consumer funds “digitally or otherwise”. They also added that “Moneygram is not a party to SEC action”.

Regarding the current status of the trade agreement between the two parties, the transfer company stated:

The company has not been notified or advised of any negative effects of its trade agreement with Ripple at this time, but will continue to look for possible effects as developments in the lawsuit evolve. Moneygram has had a trading agreement with Ripple since June 2019.

They clarified that such an agreement would incorporate Ripple’s blockchain forex trading platform into the existing four-currency cross-border payment solution. However, Moneygram stated the following:

Moneygram has continued to use its other traditional counterparties to trade forex throughout the life of its agreement with Ripple and does not rely on the Ripple platform to meet its forex trading needs.

Recent steps on the ripple versus money gram relationship

On November 29, 2020, Ripple Inc. announced the sale of 4 million of its shares in Moneygram, representing roughly a third of its total stake in the company. At the time, the decision appeared to be partly motivated by the soaring Moneygram share price and Ripple’s desire to be paid out after buying the shares at a $ 4.10 premium in 2019.

As reported by news.Bitcoin.com, the US Securities and Exchange Commission has taken legal action against Ripple, its CEO Brad Garlinghouse and co-founder Christian Larsen, alleging that the regulator was involved in an “unregistered, ongoing offering of securities for digital assets “Investors have been participating since 2013 via its XRP token – a claim that was rejected by the blockchain firm.

What do you think of the Moneygram statement? Let us know in the comments below.

Tags in this story

Brad Garlinghouse is XRP Security, MoneyGram, Wire Transfer, Ripple Labs, Ripple Lawsuit, Ripple Security, Sec Suing Ripple, XRP Crypto, XRP Lawsuit, XRP Security

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.