MoneyGram denies using Ripple’s XRP or its RippleNet after the SEC launched a lawsuit towards the company and the price of the token plummeted. The punches seem to be never-ending with the latest one being from Ripple’s “partner” MoneyGram as we read more in the latest ripple news.
The international payments processor MoneyGram denies using Ripple’s RippleNet and its XRP token after various charges were levied against the company and its founders for selling unregistered securities. In a statement, the company said that it never used Ripple’s on-demand liquidity service or RippleNet in any form despite ripple popularizing the partnership two years ago:
“MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”
Perhaps the single most damning details from the Ripple complaint:
The main financial company using XRP, a money transmitter, told Ripple it was much more expensive than alternatives and only agreed to use it because Ripple was paying it to do so. pic.twitter.com/h9ZJVnGAQC
— Nathaniel Popper (@nathanielpopper) December 22, 2020
The company had a commercial agreement with Ripple since 2019 and with the agreement, the companies agreed on using Ripple’s foreign exchange blockchain trading platform for purchasing or selling four currencies. These businesses don’t directly use XRP but depend on the ripple blockchain for low-fee and quick cross-border transfers. MoneyGram now said that it received intimidation from the company about the lawsuit:
“The Company has not currently been notified or been made aware of any negative impact to its commercial agreement with Ripple but will continue to monitor for any potential impact as developments in the lawsuit evolve.”
https://twitter.com/stephendpalley/status/1341481715622146055
The statements joined an unnamed party in the lawsuit and said that Ripple paid for these partnerships with the cost of using the platform being higher than the currently used services. Ripple was sued by the US Securities and Exchange Commission on charges that it sold $1.3 million worth of unregistered securities in the form of the XRP tokens.
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The company even paid exchanges to pump the token prices and to provide high volumes to trading pairs in order to make them look attractive.
The founders of the company Brad Garlinghouse and Chris Larsen were also named in the lawsuit for cashing out $700 million in the illegal sale. XRP’s price crashed by 50% ever since the lawsuit was launched. A few exchanges already delisted it until there’s more clarity on the matter.
Ripple finally rebounded after yesterday’s massacre while Bitcoin is also getting ready to surpass $24,000, with it now trading less than $500 from the new all-time high as most altcoins follow it with impressive double-digit increases. The main cryptocurrency went on a roller coaster over the past few days with several notable price moves ending up in a new all-time high and subsequent $2000 drop.
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