Brad Garlinghouse, CEO of Ripple, said the company will end its partnership with MoneyGram. However, they remain committed to eliminating payment problems inherent in global financial systems. In response, Ripple again tweeted details of their recent significant partnership with bKash and Mobile Money.
#RippleNet works with Mobile Money and @bKash_ltd to enable seamless e-payment solutions between Malaysia and Bangladesh. Learn more. https://t.co/ocj8NnkgSi
– Ripple (@Ripple) March 8, 2021
Ripple and MoneyGram split the options for now
Garlinghose announced that Ripple and MoneyGram have decided to part ways. The news comes after the regulatory fallout of the SEC lawsuit against Ripple.
A brief statement outlined the success they achieved together, namely the billions transacted through RippleNet and on-demand liquidity. Team Ripple announced that both companies are open to re-examining the partnership in the future.
“We are proud of the work we have been able to do in a short period of time as well as the impact we have had in bringing this unique product to market. Together we’ve processed billions of dollars through RippleNet and On-Demand Liquidity (ODL). “
Garlinghouse mentioned that “The lack of a Crypto-Reg framework has unnecessarily tarnished the waters for US businesses and consumers. “The assumption that ongoing regulatory action is the reason for the termination of the partnership.
A class action lawsuit was filed against MoneyGram earlier this month in connection with the ongoing SEC case against Ripple. Plaintiffs make several allegations, but their main concern concerns false / misleading statements about the use of XRP.
“According to the lawsuit, throughout the class period, defendants made false and / or misleading statements and / or failed to disclose that: (1) XRP, the cryptocurrency MoneyGram used as part of its Ripple partnership, was considered unregistered and therefore unlawful security by the SEC. “
MoneyGram’s share price fell to $ 5.69 after it was announced in closed market trading.
Font from Mandamus
The founder of the Crypto Law, John Deaton, recently spoke about the motion for enactment of a mandamus that he had filed on behalf of XRP holders in the U.S. District Court in Rhode Island.
A mandamus letter is a court order issued by a judge at the request of a petitioner that compels a government, corporation, or agency to perform a duty they are legally required to do.
“A mandamus letter is deemed necessary when the actions (or inactivity) of government agencies or corporate officials are so inappropriate or egregious that the legal system must take immediate action.”
Deaton’s main argument comes from the fact that the SEC’s action against Ripple XRP investors and Ripple partners hurt billions of dollars. This is in violation of the SEC’s mission to protect investors and promote fairness, according to Deaton.
The split between Ripple and MoneyGram has not had a negative impact on the price of XRP. It remains in an ascending channel that formed earlier this month. Currently, XRP is priced at $ 0.48, up 1% from the day.
Source: XRPUSD on TradingView.com