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MoneyGram suspends cooperation with Ripple amid SEC lawsuit

MoneyGram money transfer service has abandoned the use of the product based on the XRP token due to the claims of the US Securities and Exchange Commission (SEC) against Ripple. This is stated in the company’s report.

In the first quarter of 2021, MoneyGram expects no revenue from the partnership with the California-based firm.

“Due to the uncertainty surrounding the litigation with the SEC, the company has suspended trading on the Ripple platform,” the statement said.

Since summer 2019, MoneyGram has been using On-Demand Liquidity to process cross-border payments. The service received a commission in XRP for interacting with it.

In the same year, Ripple closed a $ 50 million deal with MoneyGram. In the second quarter of 2020, the company paid the partner $ 15 million, in the third – $ 9.3 million, in the fourth – $ 8.5 million.

At the end of 2020, the SEC accused Ripple of selling unregistered securities in the form of tokens worth $ 1.3 billion. Later, the regulator clarified the responsibility of the company’s CEO Brad Garlinghouse and its co-founder Chris Larsen.

Amid SEC claims, major platforms have dropped support for the XRP token. These include Coinbase and OKCoin, Galaxy Digital, Bitstamp, B2C2, eToro, and Kraken.

Asset management company Grayscale Investments announced the liquidation of the XRP-based investment trust, and 21Shares has removed the Ripple token from its exchange-traded products.

As a reminder, since the filing of the lawsuit, MoneyGram has taken a wait and see attitude. Then the service did not see a “negative impact” on cooperation with the Californian company.

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Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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