Moneygram distances itself from Ripple after the SEC lawsuit.

Moneygram issued a statement addressing the recent turmoil between Ripple and the U.S. SEC due to a lawsuit filed by the regulator against the crypto company.

According to the official statement, remittance firm Moneygram pointed out that its collaboration with the blockchain firm Ripple doesn’t involve using the ODL platform or Ripplenet for direct transfer of consumer funds, “digital or otherwise.” Also, they added that “Moneygram is not a party to the SEC action.” On the current status of the commercial agreement between both companies, the remittance company commented that the company has not currently been notified or been made aware of any negative impact to its commercial agreement with Ripple but will continue to monitor for any potential impact as developments in the lawsuit evolve. 

 

Moneygram has had a commercial agreement with Ripple since June 2019.

Moneygram clarified that such an agreement involved Ripple’s foreign exchange blockchain trading platform in its existing cross-border payments solution for four currencies. The announcement further noted that Moneygram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple and is not dependent on the Ripple platform to accomplish its FX trading needs. Earlier, Ripple announced the selling of 4 million of its shares in Moneygram, representing about a third of its total shareholding in the company. 

 

Ripple plans to fight the lawsuit brought by the SEC. 

As reported earlier, Ripple CEO Brad Garlinghouse said that they plan to fight the lawsuit in a series of Tweets. Ripple CEO noted that the SEC – out of step with other G20 countries & the rest of the U.S. govt – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). “We are ready to fight and win – this battle is just beginning,” he wrote.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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