One of the largest remittance companies in the world issued a statement addressing the recent turmoil between Ripple and the United States Securities and Exchange Commission (SEC) due to a lawsuit filed by the regulator against the crypto company.
Moneygram distances himself from Ripple amid US SEC filing
According to the official statement, Moneygram pointed out that its collaboration with the blockchain company does not involve the use of the ODL or Ripplenet platform for direct transfer of consumer funds, “digital or not”. In addition, they added that “Moneygram is not part of the SEC’s action”.
Regarding the current status of the commercial agreement between both parties, the sending company commented:
The company has not been notified or informed of any negative impact on its business agreement with Ripple, but will continue to monitor any potential impact as the lawsuit evolves. Moneygram has had a commercial agreement with Ripple since June 2019.
They clarified that such an agreement involved Ripple’s foreign exchange blockchain trading platform in its existing cross-border payment solution for four currencies. However, Moneygram specified:
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.
Recent moves in the Ripple – Moneygram relationship
On November 29, 2020, Ripple Inc. announced the sale of 4 million of its shares in Moneygram, representing about a third of its total stake in the company. At the time, the decision seemed partly motivated by the increase in the price of Moneygram’s shares and Ripple’s desire to cash out after buying the shares with a $ 4.10 premium in 2019.
As news.Bitcoin.com reported, the United States SEC has filed a lawsuit against Ripple, its CEO, Brad Garlinghouse, and co-founder Christian Larsen, as the regulator is claiming that they participated in an “offer of non-digital assets” registered underway “investors since 2013 through their XRP token – a claim denied by the blockchain company.
What are your thoughts on Moneygram’s statement? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Legal notice: This article is for information purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damages or losses caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.