Class-action lawsuit filed against MoneyGram for False allegation about XRP

Spread the love

After Ripple Laboratories, the payment giant MoneyGram is the next to be caught at the end of the legal entanglement, with a class action suit lodged on 1 March alleging that MoneyGram distorted its association with Ripple and, by default, XRP.

The case in question, brought on behalf of the purchasers of the shares of MoneyGram International, Inc. between 17 June 2019 and 22 February 2021, alleges that the payment company has consistently made “false and/or misleading claims” about its partnership with the blockchain firm. According to the same, MoneyGram has not properly disclosed that the SEC sees XRP, a cryptocurrency used by MoneyGram as part of its partnership with Ripple, as an unregistered protection.

Contending that the victims sustained losses, the case further claims that MoneyGram did not report the damages,

“…. in the event that the SEC decided to enforce the securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial results throughout the Class Period.”

The class action lawsuit brought by Rosen Law Firm comes at an interesting moment, particularly because, over the last few months, MoneyGram has done its utmost to distinguish itself from Ripple, XRP and the legal problems they face.

RECOMMENDED READ:  Chainlink user who got $11K in donations for $50K error, says it's 'Christmas magic,'

Remember this – back when the relationship between Ripple and MoneyGram was first revealed, the latter said that it would use “Ripple’s xRapid offering to exploit XRP in foreign exchange settlement as part of the cross-border payment phase of MoneyGram.”

Fast forwards to December 2020, though, and MoneyGram was swift to claim that it did not rely on Ripple for its FX trading needs. Two months later, it went as far as suspending its relationship with Ripple, noting the confusion surrounding the continued conflict with the SEC.

At this time, it is still uncertain what the new litigation entails for Ripple and the XRP ecosystem.

 370 Interactions,  6 today

READ ALSO:
Ripple, MoneyGram end relationship, alleging ‘lack of a crypto-reg system’

Ripple and MoneyGram have ended their partnership agreement, according to an announcement made earlier today. However, according to Ripple CEO Read more

MoneyGram Releases Statement Distancing Itself From Ripple in Wake of SEC Probe

The news of the U.S. Securities and Exchange Commission (SEC) coming after Ripple continues to have negative consequences for the Read more

Bitcoin Price Movement Analysis for 16th April, 2021

Today, the Bitcoin price is plummeting as buyers race to win after it hit an all-time high of $64,945. Bitcoin Read more

The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

Finance authorities dismiss cryptocurrencies, in the wake of Coinbase’s IPO celebrations

Economic gatekeepers are taking a closer look at blockchain as mainstream coverage of the Bitcoin bubble and Coinbase listing intensifies. Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Leave a Reply

Contact Us