US-based financial services company MoneyGram has revealed details of its partnership with Ripple as the payment protocol faces a lawsuit from the US Securities and Exchange Commission (SEC). In the filing, the SEC said Ripple and two of its executives are guilty of selling unregistered securities in an offering. The executives involved are Ripple CEO Brad Garlinghouse and co-founder Christian Larsen.
Amid the ongoing legal battle, MoneyGram said that the global financial service company does not use RippleNet for forex transactions.
In the press release published on the 23rd of December, MoneyGram said:
“MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple, and is not dependent on the Ripple platform to accomplish its FX trading needs.”
MoneyGram entered into a two-year “strategic partnership” with Ripple on cross-border payments and foreign exchange documents with cryptocurrencies in June 2019. Under the deal, Ripple also agreed to invest $50 million in MoneyGram in exchange for within the period of the partnership.
In addition, Ripple invested another $11.3 million in MoneyGram earlier this year.
Apart from MoneyGram, another Ripple partner, Intermex, said in March that it does not use the payment protocol from remittance in its “core markets.”