Moneygram Cease Co-operation With Ripple Amid SEC Lawsuit
February 25, 2021 12:03 AM
Ripple Labs and it's executives are facing a lawsuit by the U.S Security and Exchange Commission (SEC) which has propelled Moneygram to suspend using the Ripple platform.
Moneygram, who earned over $50 million from Ripple by using the platform. On Monday the company announced that is has discontinued trading on Ripple platform in the firms latest earning report for 2020. Moneygram recorded a total revenue of $1,217 million.
In it's outlook for 2021 first quarter, The firm stated that it is not planning for benefit from Ripple market development fees during the first quarter. Moneygram added: "due to the rising tension concerning their ongoing suit with the SEC, the firm has suspended trading on the Ripple platform.
In June 2019 Ripple had an agreement with Moneygram to use it's foreign exchange blockchain platform (ODL) for the purchase or sale of four currencies.
The Security and Exchange Commission (SEC) filed a lawsuit in December against Ripple labs Inc and it's executives as the SEC claimed that the company sold unregistered securities.
The SEC claims that much of the onboarding onto Ripple ODL was not organic or driven by the market.