MoneyGram Distances Itself from Ripple Following SEC Lawsuit

As exchanges start to distance themselves from XRP following the US regulator’s lawsuit against Ripple, remittance company MoneyGram issued a statement to clarify its relationship with the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term company.

“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,” MoneyGram stated.

The remittance company’s statement came as Ripple is a prominent investor in it. The California-based blockchain company made its investment into MoneyGram at the beginning of 2019 with a promise of $50 million in total investment.

Ripple recently decided to shed 33 percent of its total stake in MoneyGram.

In an exchange for the investments, MoneyGram agreed to use Ripple’s blockchain-based technology in its existing cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term infrastructure for four currencies.

Not Dependent on Ripple

“MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple, and is not dependent on the Ripple platform to accomplish its FX trading needs,” MoneyGram specified.

“As a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise.”

Ripple’s troubles began earlier this week as the US SEC filed a lawsuit against the company for selling unregistered securities and illegally raising $1.3 billion since 2013. Two Ripple executives, Chris Larsen and Brad Garlinghouse were also named in the lawsuit.

Though MoneyGram is not a party in the lawsuit, the SEC specifically mentioned its relationship with Ripple.

“The Money Transmitter became yet another conduit for Ripple’s unregistered XRP sales into the market, with Ripple receiving the added benefit that it could tout its inorganic XRP ‘use’ and trading volume for XRP,” the SEC complaint noted.