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MoneyGram suspends buying and selling on Ripple, citing SEC lawsuit

02/23/2021

“As a result of uncertainty regarding their ongoing litigation with the SEC, the corporate has suspended buying and selling on Ripple’s platform,” says MoneyGram’s quarterly outlook.

World cash switch service MoneyGram says it has modified its relationship with blockchain funds agency Ripple amid the latter’s litigation with the Securities and Change Fee.

In response to MoneyGram’s quarterly outlook, the corporate is “not planning for any profit from Ripple market improvement charges” for the primary quarter of 2021. MoneyGram stated it had a greater than $12 million internet expense profit from Ripple in the identical quarter final yr.

“As a result of uncertainty regarding their ongoing litigation with the SEC, the Firm has suspended buying and selling on Ripple’s platform,” stated MoneyGram.

The collaboration between the 2 companies largely started three years in the past, when MoneyGram built-in XRP into its fee system. The next yr, Ripple and MoneyGram entered right into a partnership for cross-border funds and international alternate settlements with digital property.

Ripple adopted by means of with a $50 million funding in November 2019 in alternate for a ten% stake within the firm. As of December 2020, the agency has offered roughly $15 million of the MoneyGram inventory.

Nonetheless, amid the information in December 2020 that the U.S. Securities and Change Fee can be taking authorized motion in opposition to Ripple in addition to its CEO, Brad Garlinghouse, and co-founder Christian Larsen, MoneyGram has seemingly tried to distance itself from the agency. A number of days after the SEC announcement, MoneyGram stated it had by no means utilized Ripple’s On-Demand Liquidity and RippleNet providers “for direct transfers of shopper funds.”

MoneyGram is just not the one agency to react to the SEC’s lawsuit in opposition to Ripple. Many crypto exchanges have already delisted or suspended the buying and selling of the XRP token. Though the fallout from the lawsuit initially triggered XRP’s value to drop, the token has largely recovered in two months and is presently at $0.5975 on the time of publication.