MoneyGram is currently facing a class action lawsuit alleging it misleads investors using the XRP digital currency.
On behalf of the investors who bought securities from the “MoneyGram” company in 2019, the legal company “Rosen” filed a class action lawsuit against the money transfer company “MoneyGram”.
The law firm claims that any investor who bought the shares of “MoneyGram” between June 17, 2019 and February 22 of this year is entitled to compensation, given that “MoneyGram” entered into a partnership with Ripple. According to the complaint, the following is :
The defendants made false and / or misleading statements and / or failed to disclose that XRP, the cryptocurrency that MoneyGram was using as part of its Ripple Partnership, had been deemed by the Securities and Exchange Commission as an unregistered collateral and thus illegal.
The complaint filed by “Rosen” claims that the investors suffered damages and that “MoneyGram” misled investors about the XRP cryptocurrency. By virtue of changing the outlook for XRP, investors are entitled to compensation.
MoneyGram and its partnership with Ripple:
In late February, MoneyGram announced that it would withdraw its partnership with Ripple by temporarily suspending the use of the digital currency XRP on its network.
MoneyGram has previously partnered with Ripple to take advantage of XRP in transfer services, resulting in $ 61.5 million in profits.
MoneyGram used Ripple technology to settle payments in real time on foreign exchanges in a secure manner.
The digital currency XRP has been used to convert foreign currencies such as the Mexican peso, the Philippine peso, the Australian dollar and the euro, into another country’s currencies at low cost via the blockchain.
Through the MoneyGram and Ripple partnership from 2019 to 2020, XRP has been used on the MoneyGram network to facilitate the transfer of funds.
In 2018, MoneyGram was among the first to try the XRP digital currency on its network of cross-border money transfer services.
However, with the Securities and Exchange Commission filing a lawsuit against Ripple, among the charges against Ripple by the regulator is that XRP is an unregulated and unregistered security, which led MoneyGram to announce that it will stop using XRP on its statute.
The decision to stop using XRP on the MoneyGram network may have come too late, as the money transfer company is now facing a class action lawsuit from angry investors alleging that MoneyGram intentionally misled them.