MoneyGram suspends Ripple partnership, citing SEC lawsuit

Global money transfer service MoneyGram has officially ended its partnership with blockchain payment company Ripple as part of its legal dispute with the SEC.

According to MoneyGram’s quarterly outlook, the company plans “no benefit from Ripple market development fees” in the first quarter of 2021. MoneyGram said that Ripple had a net cost advantage of more than $ 12 million in the same quarter last year.

“Due to the uncertainty surrounding the ongoing litigation with the SEC, the company has stopped trading on the Ripple platform,” said MoneyGram.

Most of the collaboration between the two companies began three years ago when MoneyGram integrated XRP into its payment system. The following year, Ripple and MoneyGram partnered for cross-border payments and settlement of forex using digital assets.

Ripple followed in November 2019 with an investment of $ 50 million in exchange for a 10 percent stake in the company. By December, the company had sold approximately $ 15 million in MoneyGram stock.

In the face of news in December that the US Securities and Exchange Commission would take legal action against Ripple and its CEO Brad Garlinghouse and co-founder Christian Larsen, MoneyGram has apparently tried to distance itself from the company. Days after the SEC’s announcement, MoneyGram announced that it had “never used Ripple’s on-demand liquidity and RippleNet services to send consumer funds directly.”

MoneyGram isn’t the only company responding to the SEC’s lawsuit against Ripple. Many crypto exchanges have already delisted or suspended trading with the XRP token. Although the effects of the lawsuit initially caused the XRP price to drop, the token has largely rebounded in two months and is currently at $ 0.5975 at the time of publication.

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