Tag: 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

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.

Source : CryptoNews.com