Altcoins, Bitcoin, Blockchain, Crypto Mining News, Don't Miss, Hot News, News & Updates

Moneygram Avoids Ripple Lawsuit

MoneyGram dodged a lawsuit connected to allegations of money laundering.

In 2018, MoneyGram agreed to pay $125M to evade prosecution on charges that major executives failed to prevent money laundering on their platform. A shareholder lawsuit alleging that the top executives involved in that failure acted in bad faith has now been dropped by the Delaware Court of Chancery, according to Vice Chancellor Sam Glasscock III’s memorandum opinion, “bad oversight is not bad-faith oversight.”

The opinion described the involved MoneyGram executives as “witless,” and the mistakes as “feckless,” displaying a “lack of vigor.” that they were this bad at their jobs is what saved them from the suit.

MoneyGram is one of the biggest money transfer companies in the world. Last November 2019, Ripple completed its $50M investment into MoneyGram by buying a 9.95% stake in the firm.

The firm has faced questions in the previous weeks regarding its partnership with Ripple.

Last December, MoneyGram released a statement that its relationship with Ripple will be unaffected by the suit. “The Company has not currently been notified or been made aware of any negative impact to its commercial agreement with Ripple but will continue to monitor for any potential impact as developments in the lawsuit evolve,” stated the note.

XRP’s primary use cases involved facilitating money transfers at large banks, and at companies like MoneyGram. “As a reminder, MoneyGram does not utilize the ODL [On-Demand Liquidity] platform or RippleNet for direct transfers of consumer funds – digital or otherwise,” continued the statement.

“Furthermore, MoneyGram is not a party to the SEC action.”

Ripple’s On-Demand Liquidity is a service that enables specific kinds of international payments; MoneyGram may not be using ODL for Direct transfers, but it does use it in some capacities.

MoneyGram hangs onto Ripple as of now, however, a spokesperson for the company has stated;

“MoneyGram will continue to monitor the situation as it evolves.”

Leave a Comment

Leave a Reply