- Due to the SEC lawsuit, MoneyGram suspends trading on RippleNet.
- Meanwhile, the lawsuit caused the XRP price to crash.
- Many US-based exchanges suspended trading in Ripple.
Global money transfer service MoneyGram said that it has suspended its use of Ripple’s RippleNet.
“Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform.”
MoneyGram Suspends Trading on RippleNet
Citing the Securities and Exchange Commission’s (SEC) lawsuit, MoneyGram has also stopped the use of Ripple’s on-demand liquidity product for global money transfers. In addition, Moneygram called Ripple an illegally traded security.
In retrospect, the partnership between Ripple and MoneyGram began three years ago. As a result, both firms entered into an accord for cross-border payments and foreign exchange settlements in cryptocurrency.
In December 2020, US SEC declared that it had filed a lawsuit against Ripple for illegally raising over $1.3 billion. Thus, the embattled Ripple began its defense against the suit. Notably, using a legal document, Ripple aims to request dismissal of the SEC suit.
While the lawsuit caused XRP’s price to crash, the altcoin soon rebounded. XRP trades are slightly more than they were before the SEC lawsuit began. Based on CoinGecko, the XRP price is at $0.519, with a 24-hour trading volume of over $13.971 billion, at the time of writing.
In addition, MoneyGram made a net gain of $8.5 million on fees of $9.2 million in Q4 2020. It reported $11.3 million in market growth expenses from Ripple in 2019 and $50.2 million in 2020.
Also, many US exchanges suspended trading in Ripple due to the lawsuit. However, Ripple executives have pointed out that the vast majority of XRP transactions happen outside the US.