MoneyGram Facing Class-Action Lawsuit Over Relationship With Ripple and XRP

MoneyGram is facing a new lawsuit over its connections with blockchain technology company Ripple.

A newly filed class action lawsuit alleges that the money transfer company misled, lied to, or hidden from investors about Ripple and the XRP cryptocurrency.

The lawsuit comes months after the US Securities and Exchange Commission accused Ripple of selling XRP as an unregistered security.

The new class action lawsuit argues that MoneyGram will be financially harmed if the outcome of the SEC lawsuit is unfavorable.

“… in the event the SEC decides to enforce securities laws against Ripple, MoneyGram will likely lose the lucrative stream of market development fees that was critical to financial results throughout the class period.”

The lawsuit requires that investors who bought shares in the money transfer company during the class period be compensated. They said they had suffered damage when the exchange received news that MoneyGram “does not plan to take advantage of Ripple market development fees in the first quarter”. from 2021.

“The lawsuit seeks to seek damages for MoneyGram investors under federal securities laws.”

The lawsuit is aimed at investors who bought shares in MoneyGram between June 17, 2019 and February 22, 2021.

In November 2019, Ripple acquired a $ 50 million stake in MoneyGram. MoneyGram subsequently said it used Ripple’s XRP-based payments platform to operate 10% of its flows between the US and Mexico.

On February 22, 2021, MoneyGram announced that it had ceased using Ripple’s forex trading platform due to uncertainty about Ripple’s ongoing litigation with the SEC.

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Featured image: Shutterstock / NinaMalyna

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