Moneygram “Ripple and partnership discontinued” vs. Ripple “Partnership agreement still valid”
Global money transfer company MoneyGram has decided to end its partnership with Ripple Labs in connection with the US Securities and Exchange Commission (SEC) prosecution. Ripple denied this.
According to a quarterly report released by Moneygram on February 23, 2021 (local time), Moneygram will cease its partnership with Ripple in the first quarter of this year.
MoneyGram said, “From the first quarter of 2021, we plan to not receive a Ripple market development fee.” The reason was the uncertainty caused by Ripple and the Securities and Exchange Commission (SEC) litigation.
Ripple and Moneygram signed a partnership in June 2019. Ripple acquired about 10% of the moneygram company. Moneygram has supported the cross-border money transfer solution On-Demand Liquidity.
Moneygram included XRP in its payment system and introduced cross-border payment and foreign exchange payment services through digital assets.
After the SEC’s lawsuit was filed, Moneygram began to distance itself from Ripple. Moneygram has discontinued Ripple’s On-Demand Liquidity and RippleNet services in’Direct Consumer Deposit Transfer’.
Earlier on December 24, 2020, MoneyGram announced in an official statement regarding the SEC’s Ripple prosecution, “Apart from its partnership with Ripple, MoneyGram has been handling foreign exchange remittances with traditional foreign exchange trading companies.” Forex trading does not depend on the Ripple ODL platform.”
Then, Moneygram side drew a line on the connection with the lawsuit, saying, “Moneygram does not directly transfer consumer funds through Ripple’s ODL platform or Ripplenet.”
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Ripple “Moneygram contract still valid…to come up with an active alternative”
While Moneygram announced it had decided to suspend its partnership with Ripple, Ripple insisted that the contract with Moneygram was still valid.
On February 23, Ripple explained through its official channel, “We signed a multi-year contract with Moneygram in 2019, and the contract is still valid”. “The contract is not limited to the use of its ODL solution.”
Ripple added, “We are actively looking for alternative use cases,” and added, “When the lawsuit is over, regulations in the field of digital assets and blockchain technology in the United States will become clearer.
On December 22, 2020, the SEC filed a lawsuit against Ripple, Ripple CEO Brad Garlinghouse, and co-founder Chris Larsen. It is accused of violating the securities law by selling $1.3 billion worth of unregistered securities XRP.
The first trial between Ripple and the SEC began on February 22, 2021. The SEC filed a revised complaint to the court on the same day, emphasizing that defendants Brad Garlinghouse and co-founder Chris Larson Ripple were actively involved in activities that violate securities laws.
The lawsuit between Ripple and the SEC is expected to continue until August 16, when discovery is completed.
Major exchanges took off from Ripple… The transaction was suspended
Following the SEC’s prosecution, the cryptocurrency exchange’s delisting of XRP and liquidity providers continued to stop trading. A number of companies and cryptocurrency exchanges have temporarily suspended trading on XRP.
If the SEC wins, it can be interpreted that the act of permitting XRP transactions is potentially illegal, and thus it has taken preemptive actions in terms of risk management.
In addition to Coinbase, the largest cryptocurrency exchange in the United States, cryptocurrency exchanges such as BitQuiz, OSL, Crosstower, and Bitstamp have stopped supporting Ripple transactions. Galaxy Digital, led by global liquidity provider Jump Trading and cryptocurrency giant Mike Novograz, also ended support for transactions.
Simplex, which provides solutions for purchasing cryptocurrencies with credit cards on platforms such as Binance, Huobi, Kucoin, and BitPay, also stopped supporting. B2C2, a major cryptocurrency market maker, has also stopped supporting.
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