Ripple, the firm behind creating the world’s third-largest cryptocurrency, has some of its partners clarifying relationships to prevent being party to the lawsuit. SEC sued XRP executives based on an allegation that the Fintech company did not register its tokens before putting them out for sale since 2013 when the tokens were first launched.
The accused party, Ripple, explained that XRP was real crypto and did not need to be registered as a security. The US securities regulatory body bluntly disagreed and progressed in their suit. The controversy Ripple faces tremendous backlash and criticism at this point, while MoneyGram, one of its partners since 2019, revealed that it was independent of their collaboration.
MoneyGram to monitor Ripple’s suit
This week held many activities in the crypto space, from the constant instability of asset prices to one of the world’s most considerable digital assets facing an expensive lawsuit. Everyone is anticipating what the case’s conclusion might be.
Even though several trading platforms have distanced themselves from the crypto, MoneyGram still holds it in high regard. The remittance company revealed that its partnership with Ripple had not given it any harmful impact, nor has its attention been drawn to adverse outcomes based on the league.
However, the company assured that it would keep watch of any negative impact the possible suit might have against it, following Ripple’s case. The firm’s clarification was necessary because the accused party plays a massive part in MoneyGram.
Ripple invested in MoneyGram in 2019 and assured that it would support more. Like any firm, the payment company had to prevent its other investors from reacting negatively to the news and withdrawing their investments. Interestingly, the crypto company had drawn more than 30% of its previous investment in the remittance firm even before the case.
MoneyGram explains why it is not dependent on Ripple
The two firms agreed that Ripple would invest in MoneyGram. In return, the remittance company would use the cryptocurrency in its cross-border payment to broaden the California-based fintech company’s exposure.
Following their earlier agreement, the payment company used the blockchain tech for several currencies, cutting across major crypto users. In a recent explanation, MoneyGram revealed that it still used its previous FX trading platform during its not coerced to use Ripple’s platform for its transactions.
It is safe to note that the remittance company is not a party in the Ripple case. However, the US assets regulatory body mentioned the firm during its charges against the XRP team, following heavy investors in MoneyGram. Some people worry that associating the two during the suit could affect the remittance company negatively.
The company has not recorded any negative outflow of investments, but some claim that it is just a matter of time. XRP’s shares are equally dropping, primarily due to the suit. The digital asset firm has continually remained unshaken by the claim and stands on its belief that the offering did not need to be registered.