MoneyGram, which is among the most important partners of Ripple but recently announced that they have suspended the partnership, was included in the Ripple case. On March 1, a lawsuit was filed against MoneyGram, who claimed that MoneyGram “misrepresented its relationship with Ripple and therefore with XRP”.
MoneyGram was one of Ripple’s most important partners
MoneyGram International, Inc. The lawsuit filed on behalf of buyers of securities between June 17, 2019 and February 22, 2021 alleges that the payment firm repeatedly made “false and / or misleading statements” about its relationship with the blockchain firm. According to the same situation, MoneyGram did not correctly explain that the SEC considers XRP, a cryptocurrency used by MoneyGram as part of its relationship with Ripple, as an unregistered security.
The lawsuit, claiming that the plaintiffs were harmed, also claims that MoneyGram did not disclose it.
“If the SEC decides to enforce securities laws against Ripple, MoneyGram could lose the lucrative stream of market development fees that are critical to its financial consequences.”
Trying to stay out of the case
The class action filed by the Rosen Law Firm came up at an interesting time. Especially in the last few months, MoneyGram has done its best to distance itself from Ripple, XRP and the legal problems they face.
When the partnership between Ripple and MoneyGram was first announced, MoneyGram claimed it would use “Ripple’s xRapid product by leveraging XRP for currency transactions as part of cross-border payment processes.”
However, back in December 2020, MoneyGram said it was not dependent on Ripple for its FX trading needs. Two months later, they went so far as to suspend their partnership with Ripple, citing the uncertainty surrounding the ongoing lawsuit with the SEC.
Currently, it is still unclear what the latest case means for Ripple and the XRP ecosystem.