One of the world’s largest remittance companies issued a statement addressing the recent riots between Ripple and the US Securities and Exchange Commission over a regulator lawsuit against the crypto company.
Moneygram distances itself from Ripple amid US SEC lawsuit
According to the official statement, Moneygram indicated that its collaboration with the blockchain company does not include using the ODL platform or Ripplenet for direct transfer of consumer funds “digitally or otherwise”. They also added that “Moneygram is not a party to SEC action”.
The remittance company commented on the current status of the trade agreement between the two parties:
The company has not been notified of any negative impact on its trade agreement with Ripple at this time, nor has it become aware of any potential impact as the lawsuit evolves. Moneygram has had a commercial agreement with Ripple since June 2019.
They clarified that such an agreement would incorporate Ripple’s forex blockchain trading platform into their existing four-currency cross-border payment solution. However, Moneygram stated the following:
Moneygram has continued to use its other traditional FX trading counterparties throughout the term of the agreement with Ripple and does not depend on the Ripple platform for 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 to Moneygram, representing approximately one-third of its total shareholding in the company. At the time, the decision appeared to be motivated in part by the soaring Moneygram share price and Ripple’s desire to pay off after buying the shares at a premium of $ 4.10 in 2019.
As reported by news.Bitcoin.com, the US SEC has taken legal action against Ripple, its CEO Brad Garlinghouse and co-founder Christian Larsen for claims that regulators are involved in an “unregistered, ongoing offering of securities for digital assets” Investors have participated since 2013 via its XRP token – a claim the blockchain company denies.
What do you think of Moneygram’s statement? Let us know in the comment section below.
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