As the exchanges begin to distance themselves from XRP after the U.S. regulator’s lawsuit against Ripple, remittance company MoneyGram issued a statement to clarify its relationship with the blockchain company.
“The company has not been notified or informed of any negative impact on its commercial contract with Ripple, but will continue to monitor any potential impact as the lawsuit evolves,” said MoneyGram.
The remittance company’s statement came as Ripple is a prominent investor in it. The California-based blockchain company made its investment in MoneyGram in early 2019 with a $ 50 million pledge in total investment.
Ripple recently decided to divest 33 percent of its total stake in MoneyGram.
In exchange for the investments, MoneyGram agreed to use Ripple’s blockchain-based technology in its existing international payment infrastructure for four currencies.
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Not wave dependent
“MoneyGram continued to use its other traditional FX trading counterparties throughout the term of the contract with Ripple and is not dependent on the Ripple platform to fulfill its FX trading needs,” specified MoneyGram.
“As a reminder, MoneyGram does not use the ODL or RippleNet platform for direct transfers of consumer funds – digital or not.”
Ripple’s problems started earlier this week, when the United States SEC filed a lawsuit against the company for selling unregistered securities and illegally raising $ 1.3 billion since 2013. Two Ripple executives, Chris Larsen and Brad Garlinghouse were also cited in the lawsuit.
Although MoneyGram is not a party to the lawsuit, the SEC specifically mentioned its relationship with Ripple.
“Money Transmitter has become yet another channel for Ripple’s unregistered XRP sales in the market, with Ripple receiving the added benefit of being able to tout its ‘use’ of inorganic XRP and trading volume for XRP,” noted the complaint SEC.