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MoneyGram suspends buying and selling on Ripple, citing SEC lawsuit

World cash switch service MoneyGram says it has modified its relationship with blockchain funds agency Ripple amid the latter’s litigation with the Securities and Change Fee.

Based on MoneyGram’s quarterly outlook, the corporate is “not planning for any profit from Ripple market growth charges” for the primary quarter of 2021. MoneyGram mentioned it had a greater than $12 million internet expense profit from Ripple in the identical quarter final 12 months.

“As a result of uncertainty regarding their ongoing litigation with the SEC, the Firm has suspended buying and selling on Ripple’s platform,” mentioned MoneyGram.

The collaboration between the 2 companies largely started three years in the past, when MoneyGram built-in XRP into its fee system. The next 12 months, Ripple and MoneyGram entered right into a partnership for cross-border funds and overseas change settlements with digital belongings.

Ripple adopted by means of with a $50 million funding in November 2019 in change for a ten% stake within the firm. As of December 2020, the agency has bought roughly $15 million of the MoneyGram inventory.

Nonetheless, amid the information in December 2020 that the U.S. Securities and Change Fee can be taking authorized motion towards Ripple in addition to its CEO, Brad Garlinghouse, and co-founder Christian Larsen, MoneyGram has seemingly tried to distance itself from the agency. Just a few days after the SEC announcement, MoneyGram mentioned it had by no means utilized Ripple’s On-Demand Liquidity and RippleNet companies “for direct transfers of shopper funds.”

MoneyGram shouldn’t be the one agency to react to the SEC’s lawsuit towards Ripple. Many crypto exchanges have already delisted or suspended the buying and selling of the XRP token. Though the fallout from the lawsuit initially brought on XRP’s worth to drop, the token has largely recovered in two months and is at present at $0.5975 on the time of publication.