- Moneygram, one of the largest remittance companies in the world, has released a statement addressing the recent turmoil between Ripple and the US Securities and Exchange Commission (SEC) over a lawsuit filed by the regulator against the crypto company.
Moneygram, one of the largest remittance companies in the world, has released a statement addressing the recent turmoil between Ripple and the US Securities and Exchange Commission (SEC) over a lawsuit filed by the regulator against the crypto company.
MoneyGram: “We are not party to the Ripple case.”
According to the official statement, Moneygram pointed out that its collaboration with the Blockchain firm does not include using the ODL platform or Ripplenet for direct transfer of “digital or otherwise” consumer funds. Also, “Moneygram is not a party to SEC action.” they added.
On the current state of the commercial agreement between both parties, the remittance company commented:
The company has not been notified of a negative impact on its trade deal with Ripple at this time, but will continue to monitor possible effects as the case progresses. Moneygram has a commercial agreement with Ripple since June 2019.
They explained that such a deal includes Ripple’s blockchain trading platform for four currencies in the current cross-border payment solution. However, Moneygram stated:
Moneygram continued to use other traditional FX trading counterparties during its deal with Ripple. It is not dependent on the Ripple platform to meet FX trading needs.
On November 29, 2020, Ripple Inc. announced that it had sold 4 million of its shares in Moneygram, representing about a third of its total shares in the company. At the time, the decision partially resulted in a higher Moneygram share price.
The US SEC recently took legal action against Ripple, its CEO, Brad Garlinghouse, and its co-founder Christian Larsen. The regulator claims to participate in an “unregistered, ongoing digital asset securities offer”.