Moneygram Halts Using Ripple Due to SEC Lawsuit Over XRP Cryptocurrency

Moneygram has announced that it will suspend use of the Ripple platform as a result of a lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple Labs and its officials. Last year, the company received $50.2 million from Ripple for using the platform.

money stops when using the Rippleplatform

Moneygram International announced on Monday that it has stopped trading on the Ripple platform. The announcement was made as part of the Company’s fourth quarter and full year 2020 results report. For 2020, Moneygram reported total revenues of $1,217 million; remittance revenues were $1,105 million.

As part of its guidance for the first quarter of 2021, detailed in the report, Moneygram wrote that it does not expect to benefit from the development costs of the corrugated market in the first quarter, adding

Due to the uncertainty surrounding its ongoing legal battle with the SEC, the company has suspended operations on the Ripple platform.

How many wrinkles does one gram of silver produce?

Moneygram has signed a commercial agreement with Ripple to use Ripple’s trading platform (ODL) to buy or sell four currencies from June 2019, the company said. The platform uses the crypto-current XRP. The use of Moneygram is subsidized by Ripple.

In its earnings report released Monday, Moneygram said it made a net profit of $12.1 million in the first quarter of 2020 from Ripple market development costs. In the fourth quarter, the Company generated net income of $8.5 million from market development costs for Ripple of $9.2 million, partially offset by related operating and marketing expenses of $0.7 million.

The Company’s interim financials for 2020 and 2019 include corrugated market development costs of $50.2 million and $11.3 million, respectively. These figures were partially offset by corresponding operating and selling expenses of $11.9 million and $0.4 million, respectively.

Money Gram cites SEC lawsuit as reason for suspension of Rippleplatform

In December, the SEC filed a complaint against Ripple Labs Inc. and its CEO Brad Garlinghouse and co-founder Christian Larsen, accusing them of conducting a $1.3 billion offering of unregistered securities of the XRP cryptocurrency.

The SEC complaint alleges that much of the ODO’s implementation was not organic or marketable. Instead, it was funded by Ripple. The controller is described below: While Ripple sees ODL as a cheaper alternative to traditional payment rails, at least one lender has noted that it is much more expensive and therefore not a product they would want to use without significant compensation from Ripple.

Without naming the money transmitter in question, the SEC stated: The money transmitter served this primary purpose for Ripple in exchange for significant financial compensation:

The Silver Sender became another channel for Ripple to market unregistered XRP, giving it an additional advantage that it could express with its use of inorganic XRP and its trading volume for XRP.

What do you think of Moneygram’s decision to stop using the Ripple platform? Let us know in the comment section below.

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frequently asked questions

Will XRP reach $1,000? No, Ripple XRP will never reach $1,000. After all, its total revenue is less than $100 billion, which means it would need a market capitalization of $100 trillion to reach the $1 trillion price point.

Does MoneyGram use XRP?

MoneyGram, currently the world’s second-largest money transfer provider after Western Union, began using Ripple’s ODL to deposit and withdraw four currencies in June 2019.

Will the XRP reach $200?

It’s almost impossible. The XRP is capped at 100 billion units, meaning that the total market cap of $200 per unit must be greater than the world’s GDP.

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