The global money transfer serviceMoneyGram says it has officially suspended its partnership with blockchain payment company Ripple as part of its litigation with the SEC.
Based on MoneyGram’s quarterly outlook The company “does not expect any benefit from Ripple’s market development fees in the first quarter of 2021.” MoneyGram announced that Ripple had a net cost advantage of more than $ 12 million in the same quarter of last year.
“Due to the uncertainty surrounding the ongoing litigation with the SEC, the company has stopped trading on the Ripple platform,” MoneyGram said.
Most of the collaboration between the two companies began three years ago when MoneyGram integrated XRP into its payment system. The following year, Ripple and MoneyGram worked together for cross-border payments and currency settlement with digital assets.
Ripple continued its investment in November 2019 with a $ 50 million investment in exchange for a 10% stake in the company. By December, the company had sold MoneyGram shares valued at around $ 15 million.
In light of the news in December that the US Securities and Exchange Commission would take legal action against Ripple and its CEO Brad Garlinghouse and co-founder Christian Larsen, MoneyGram has apparently tried to distance itself from the signature. Days after the SEC’s announcement, MoneyGram said it had “never used Ripple’s RippleNet and on-demand liquidity services to send money directly from consumers.”
MoneyGram isn’t the only company responding to the SEC’s lawsuit against Ripple. Many cryptocurrency exchanges have already removed or suspended trading in XRP tokens. Although the impact of demand initially caused the XRP price to drop, the token has largely rebounded in two months and is currently at $ 0.5975 in the year of release.