Category: Ripple

Ripple Goes For Asia Amid Continuing Legal Battle In United States

Ripple Goes For Asia Amid Continuing Legal Battle In United States

US-based major blockchain company Ripple that is still fighting a major legal battle with American regulators said it has agreed to acquire 40% in Tranglo, an Asian cross-border payments specialist.

The transaction is expected to be closed this year, while TNG Fintech Group will remain the majority shareholder in Tranglo, Ripple said without providing any other details about the deal.

With this acquisition, the blockchain company aims “to meet growing customer demand in the region and expand the reach of RippleNet’s On-Demand Liquidity (ODL) service.” ODL uses the XRP token to send money. The US Securities and Exchange Commission (SEC) accused Ripple’s two co-founders and executives of personally profiting from the sales of XRP, which it claims is an “unregistered security,” to the tune of around USD 600m.

As the legal battle is still ongoing in the US, the company aims to broaden its ODL footprint in Southeast Asia, “the fastest-growing region for RippleNet adoption.” Last week, Ripple announced Brooks Entwistle as Managing Director of Southeast Asia.

Brad Garlinghouse, CEO of Ripple, previously said that if the SEC were to say that XRP is a security, “a lot of what Ripple does in the Unites States, we could continue, no problem.” According to him, “more than 90% of RippleNet customers are outside the US,” so Ripple would “continue to build the business and grow.”

Source – Crypto News

BitMEX Founder Ben Delo Surrenders to US Authorities, released on $20M bond

BitMEX Founder Ben Delo Surrenders to US Authorities, released on $20M bond

One of the founders of the cryptocurrency derivatives exchange BitMEX surrendered to U.S. authorities to face charges of violating the Bank Secrecy Act on Monday.

Ben Delo traveled from the U.K. to the U.S. and appeared before Magistrate Judge Sarah L. Cave in a remote proceeding where he pleaded not guilty, according to public court records.

He was subsequently released on a $20 million bail bond, on Monday, with a status conference set for May, according to court records. Bloomberg further reported that Delo will be allowed to return to the UK under the terms of his bail.
Delo, alongside BitMEX co-founders Arthur Hayes and Samuel Reed, were charged with violating the BSA and conspiracy to violate the BSA last October by the U.S. Department of Justice and Commodity Futures Trading Commission.

BitMEX’s first employee, Gregory Dwyer, was also charged.

Under the BSA, financial institutions are required to provide documentation to regulators with transactions above $10,000. Its stated purpose is to prevent criminals from laundering large sums of cash at banks and elsewhere.

“The charges against Ben are unfounded and represent unwarranted overreach by the U.S. authorities,” Rachel Miller, a spokesperson for Delo, told Bloomberg. “Ben intends to defend himself against the charges and clear his name in court.”
Earlier this month, Jessica Greenwood, an assistant U.S. attorney for the Southern District of New York, said she had been in talks with Hayes’ lawyers. Court documents show Greenwood claimed to “have discussed with counsel how to arrange for a voluntary surrender” for Hayes and for an agreement to appear remotely or come to New York “as needed.”

Source – Coindesk  

Hoskinson: 100+ Companies are now Ready to Leave Ethereum ecosystem for Cardano

Hoskinson: 100+ Companies are now Ready to Leave Ethereum ecosystem for Cardano

Cardano (ADA) supremo Charles Hoskinson claims that his project is poised to steal some of Ethereum (ETH)’s thunder – with claims that “more than 100 companies” are “in the pipeline,” and will shift to Cardano when the latter’s functionality “matures.”

However, speaking to Bloomberg, he did not elaborate any further.

Meanwhile, Nic Carter, the co-founder of Coin Metrics and Partner at venture capital firm Castle Island Ventures, appeared wary of the claims, telling the same media outlet,

“I am not aware of a single popular application deployed on Cardano, nor have I seen any enthusiasm for the platform among developers. I am truly mystified as to why it is enjoying a resurgence in popularity.”

In July 2020, Hoskinson predicted that, in a year, “there will be hundreds of assets running on Cardano, thousands of dapps [decentralized apps], tons of interesting projects and lots of unique use and utility.” Back then, these claims were met with a grain of salt by industry observers.

Also, popular dapp trackers, such as DappRadar and do not provide any information about dapps on Cardano.

Hoskinson, a former prime mover and the co-founder of the Ethereum blockchain protocol, left the project after what the media has labeled a “boardroom brawl” in 2014, later setting up Cardano as a direct rival protocol.

And Hoskinson, with a touch of braggadocio, told Bloomberg that Cardano’s blockchain security and governance protocols are “superior to Ethereum,” meaning they could be used for digital voting and supply chain tracking purposes.

Hoskinson stated,

“My goal is to run countries on this blockchain. I don’t care about Uniswap and CryptoKitties and other things. It’s a bubble, and it comes and it goes, like Pet Rocks and Beanie Babies. You can take your DeFi and you can run it on my system for 1/100 to 1/1000 of the cost.”

And the network’s ADA token has had a meteoric rise this year, currently sitting at number 6 in the top 10 tokens per market capitalization.

At the time of writing (09:37 UTC), ADA trades at USD 1 and is down by 8% in a day and 12% in a week, trimming its monthly gains to less than 9%. The price has skyrocketed by 3,755% in a year.

The Cardano chief added that he “doesn’t know why” Cardano’s value has been in the ascendency this year, and added that smart contract functionality was to roll out “this year.”

Ethereum developer Ryan Berckmans earlier this month told that the ADA hype could simply be the result of crypto community members thinking that Ethereum “doesn’t scale” and speculating that “Cardano may be the answer.”

Hoskinson’s cause has been buoyed by some high-profile supporters, however, with veteran rock star Gene Simmons of Kiss mounting a very public and very impassioned defense of the token last month.

Source – Crypto News 

Ripple Asks Court to Force SEC to Produce Documents Regarding Bitcoin and Ethereum

Ripple Asks Court to Force SEC to Produce Documents Regarding Bitcoin and Ethereum

The lawyers who represent Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen are asking Federal Judge Analisa Torres to compel the U.S. Securities and Exchange Commission to produce documents relevant to its lawsuit against the blockchain company.

In a motion filed on March 15, they claim that the SEC has failed to produce any documents apart from the ones that were selected by the regulator.

Ripple wants the regulator to produce documents regarding Bitcoin and Ethereum, the two largest cryptocurrencies that have been defined as non-securities.

Notably, it asserts that “the economic substance” of XRP transactions doesn’t differ from that of the aforementioned cryptocurrencies even though the token often faces criticism for its centralization.

The SEC claimed that documents related to Bitcoin and Ether were irrelevant to the case.

Ripple says the SEC is withholding evidence
The blockchain company accuses the SEC of “withholding potentially exculpatory evidence,” claiming that it’s “clear” that exchanges were told that XRP wasn’t a security.

Based on information gleaned to date, it is clear that the SEC was told by sophisticated market participants that XRP was not a security and solicited feedback on that position, but not provide a contrary public statement until it filed its allegations in this case in December 2020. Learning all there is to learn about these facts (whether through internal or external communications) is relevant to the defense and will be central to the Court’s understanding several issues critical to the case.

Ripple also wants the court to compel Ripple to produce documents from ten custodians, including former SEC Chairman Jay Clayton.

Source – Crypto News 

MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

The money transfer firm MoneyGram is facing a class action lawsuit claiming that the company made false and/or misleading statements about its partnership with American blockchain company Ripple and the legal status of the XRP token.

Per a press release by Rosen Law Firm, the suit has already been filed, and on behalf of purchasers of the securities of MoneyGram between June 17, 2019 and February 22, 2021.

According to the lawsuit, in this period, defendants made false and/or misleading statements and/or failed to disclose that:

“XRP, the cryptocurrency that MoneyGram was utilizing as a part of its Ripple partnership, was viewed as an unregistered and therefore unlawful security by the US Securities and Exchange Commission (SEC);
in the event that the SEC decided to enforce the securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial results throughout the Class Period;
as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.”
The law firm claims that those who purchased “MoneyGram securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.”

A lead plaintiff is yet to be chosen.

MoneyGram and Ripple became partners, after the latter made a USD 30m initial investment in MoneyGram equity in June 2019. However, Ripple found itself in a long battle with the SEC over XRP, as the regulator claims that XRP is an unregistered security, which Ripple disputes.

MoneyGram recently claimed that its support for Ripple stayed in place, but still announced that it would suspend the receipt of “market development fees.” Alex Holmes, the MoneyGram CEO, said at the time that they are “definitely supportive of Ripple’s efforts, but at the same time, we have to do what is right for the organization.”

In 2020, MoneyGram received USD 38m in net market development fees from Ripple in 2020, representing about 15% of the company’s adjusted earnings before interest, taxes, depreciation, and amortization. The company said it also faced logistical challenges in using the platform, as well as legal and reputational risks, following the lawsuit against Ripple.

XRP is (at 14:01 UTC) trading at USD 0.44. It increased 2.7% in a day and decreased 5.8% in a week.

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