MoneyGram is suspending its agreement with Ripple

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As a result of the pending litigation between Ripple and the United States Securities Exchange Commission (SEC), MoneyGram has agreed to suspend trading on Ripple’s website. The company cited the “uncertainty” surrounding the pending litigation and stated:

“Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform.”

As part of a two-year deal, MoneyGram has had a commercial agreement with the crypto firm since June 2019, with Ripple promising to invest some $50 million in the venture. In addition, in order to use MoneyGram’s on-demand liquidity programme, Ripple billed the company millions of dollars for “market development fees.”

The complaint filed by SEC charges Ripple and its co-founders of “raising more than $1.3 billion through an unregistered, ongoing offering of digital assets.”

MoneyGram reported that it does not intend “to benefit from market development fees for Ripple in the first quarter.”

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In addition, the company reported in its latest statement that, in the first quarter of 2020, MoneyGram had a “nett expense benefit” of $12.1 million from business development fees for Ripple.

MoneyGram released an official statement on SEC’s legal action against Ripple on 23 December 2020. At the time, the company confirmed that it did not use “the ODL platform or RippleNet for direct transfers” and that it was “not a party to the SEC action.” It also stated that it would track any possible effect as the litigation progresses.

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