MoneyGram has announced it had suspended trading on Ripple's platform as it wants to isolate itself from the legal battle between the fintech company and the US Securities and Exchange Commission (SEC).
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In a recent quarterly earnings report, the company says it will not get benefits from Ripple's market development fees due to the "uncertainty concerning their ongoing litigation with the SEC."
"The Company is not planning for any benefit from Ripple market development fees in the first quarter," MoneyGram said.
The money transfer provider it had realized a net expense benefit of $12.1 million from Ripple market development fees in Q1, 2020. In November 2019, Ripple completed a $50 million investment in MoneyGram shortly after it invested $20 million in the company. MoneyGram's representatives said the agreement would help the company to expand its operations
However, in December 2020, the company said it does not use Ripple's network of institutional payment-providers called RippleNet for direct transfers of consumer funds – digital or otherwise. The American money transfer company emphasized it was not dependent on the Ripple platform to accomplish its FX trading needs.
Ripple first faces the SEC's allegations in December last year. The watchdog claims Ripple violated laws against selling unregistered securities. The SEC also says Ripple's Chief Executive, Brad Garlinghouse, and the company's ex-CEO Chris Larsen " orchestrated unlawful" sales and "personally profited" by approximately $600 million from sales of XRP.
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