US: MoneyGram in trouble due to Ripple situation

In the State of California, a group of investors who bought securities of the payment company MoneyGram International have sued said company, since it would have made false statements about a strategic commercial alliance with Ripple Labs, in order to use the cryptocurrency XRP in foreign exchange transactions in cross-border payment processes and lower costs and increase profits, as indicated by Cointelegraph.

Indeed, in a statement published on the MoneyGram website it was stated that Ripple had made an initial investment of US $ 30 million in MoneyGram shares, and that the agreement would allow MoneyGram to use the xRapid product, developed by Ripple; however, the problems arose after the US Securities and Exchange Commission (SEC) took action against Ripple for offering unregistered securities, prompting MoneyGram to suspend the partnership with Ripple.

In effect, the interests of MoneyGram investors would be seriously affected considering that the company had many gains from the development of the Ripple market in 2020, which translated into US $ 38 million, as stated The Wall Street Journal.

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Carlo Palomino
Bachelor from the National University of San Marcos (UNMSM). With interest in Digital Law and New Technologies. I endorse the phrase: "Knowledge is useful as it is shared." Contact: carlo.palomino19@gmail.com

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