MoneyGram Issues Statement After US SEC Files Lawsuit Against Ripple

Vandana  |  Dec 24, 2020

MoneyGram, cross-border P2P payments and money transfer platform, has recently issued a statement after the U.S. SEC has filed a lawsuit against Ripple. Even though Ripple has not stated any kind of negative impact on the firm through this lawsuit as they both are in an agreement, but the firm is quite concerned about this lawsuit. 

MoneyGram has entered into a commercial agreement with Ripple in June 2019. This partnership was to use Ripple’s foreign exchange (FX) blockchain trading platform to make purchases. However, MoneyGram has been using its own FX trading counterparties and has stated that they are not dependent on Ripple only. 

MoneyGram Is Not Entitled to Action Taken by US SEC on Ripple

As MoneyGram is not dependent on Ripple’s platform and has not been utilizing its ODL platform or RippleNet, it is not at all entitled to the action taken by the U.S. SEC against Ripple. The company has given detailed forward-looking statements where all the risks and uncertainties have been mentioned in different points.

MoneyGram has also mentioned the impact of the COVID-19 pandemic on the global economy and their business. The MoneyGram has already filed with SEC and the filing is available at the website of the firm, ir.moneygram.com.

The Lawsuit Might be a Threat

Even though the SEC has not mentioned MoneyGram in the lawsuit, there might be some threat to it. The SEC has mentioned, onboarding onto ODL was not organic or market-driven as the transactions do utilize the ODL service. As the firm has been using Ripple’s ODL, it might also come under the light of the SEC.

MoneyGram is monitoring the whole situation very closely and is hoping to stay away from this lawsuit. However, nothing could be said at the moment as the SEC has been taking several strict actions related to the industry, over the past some time now.

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