Moneygram suspended services of Ripple

SEC lawsuit against Ripple leads to suspension of its services on Moneygram platform
  • Moneygram has stopped the trading services of Ripple amidst the lawsuit filed by the SEC last year
  • Ripple had invested $50 million in November 2019 for a 10% stake in the company
  • SEC filed a lawsuit against Ripple last year
  • Many firms had either delisted the company or suspended the trading of the XRP on their platforms after such lawsuit

Moneygram, the Global money transfer company has stopped trading services of Ripple on their exchange. This was due to the ongoing litigation by the Securities and Exchange Commission (SEC). 

Moneygram & Ripple’s Relationship

Moneygram’s relationship with the blockchain payments company Ripple has changed and this is evident from the company’s actions. Moneygram informed that the main reason for delisting the XRP is the non beneficial factor from Ripple market development fees for the first quarter of 2021.

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The quarterly outlook of the company has given the projection of no benefit from Ripple. It is interesting to note that Moneygram had a $12million net expense benefit from Ripple in the same quarter in 2020. 

Consequence of SEC’s lawsuit against Ripple

The company suspended the trading on Ripple platform due to its ongoing litigation with the SEC and uncertainty about the process, said Moneygram. 

The two companies had joined hands three years ago and Moneygram used XRP in its payment system. Also, both the companies have entered into the partnership agreement for cross border payments and foreign exchange settlements with digital assets. 

Ripple had invested $50 million in November 2019 for a 10% stake in the company. By December 2020 the company had sold $15million of the Moneygram stock. 

Meanwhile, the SEC had in December 2020 put a litigation against the Ripple and the CEO Brad Garlinghouse and its Co-founder Christian Larsen. This is the reason that Moneygram has distanced itself from Ripple. After the SEC’s announcement of filing a legal action against the firm, Moneygram never utilized Ripple’s on demand liquidity and RippleNet services for direct transfer of consumer funds. 

Other firms reaction to the lawsuit & XRP’s current condition

After the SEC filed a lawsuit against Ripple last year, there were many firms which had either delisted the company or suspended the trading of the XRP on their platforms. Moneygram was not the only firm to have taken this action. The news of a fallout from the lawsuit initially affected the prices of XRP. They dropped drastically in the crypto market. However, the token has recovered in two months and is currently trading at $0.5975.

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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