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Ripple Ditched by MoneyGram Over SEC Lawsuit

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Mon, 02/22/2021 - 19:08
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Alex Dovbnya
MoneyGram has suspended its partnership with Ripple
Ripple Ditched by MoneyGram Over SEC Lawsuit
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Dallas-based money transfer company MoneyGram has suspended trading on Ripple's platform, citing regulatory uncertainly in its quarterly earnings report 

In addition, the Company is not planning for any benefit from Ripple market development fees in the first quarter. Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple's platform. In the first quarter of 2020, the Company realized a net expense benefit of $12.1 million from Ripple market development fees.

Ripple, along with two of its top executives, is being sued by the U.S. Securities and Exchange Commission over unregistered XRP sales.

Initially, MoneyGram claimed that it would continue to "monitor" the situation back in December, but the highly-touted partnership has now been put on indefinite hold.     

Related
Ripple Paid MoneyGram $9.3 Mln, According to Q3 Report

In 2019, Ripple invested $50 million in MoneyGram in exchange for a roughly 10 percent stake. It has since paid the company tens of millions in "market development fees" for providing liquidity for its product.    

Last November, Ripple cashed out a significant portion of its MoneyGram's shares. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.