Earlier this week, the US Securities and Exchange Commission, SEC, has sued Ripple and its two executives (CEO Brad Garlinghouse and co-founder Christian Larsen) for raising unregistered securities offerings of almost $1.3 billion.
Following the news of a lawsuit, the giant cryptocurrency exchange Bitstamp announced to stop deposit and withdrawal services for XRP, whose future depends on the outcome of a new SEC lawsuit. As reported earlier, three small exchanges, including OSL, Beaxy, and CrossTower, have already suspended XRP trading up till now.
An official statement of Bitstamp noted, “In light of the recent SEC filing against Ripple Labs Inc., which alleges that XRP is a security, we are going to halt all trading and deposits of XRP for our US customers on 8 January 2021 at 9 PM UTC.”
MoneyGram Response on Lawsuit
After the SEC’s recent stance against Ripple, Cross border payments firm MoneyGram stated that “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.”
MoneyGram has teamed up with Ripple in order to use Ripple’s blockchain and foreign exchange trading platform. However, the payment giant highlighted that it has “continued to utilize its other traditional foreign exchange trading counterparties,” and does not require the Ripple platform to fulfill its trading demands.
“As a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”
Amidst the SEC’s action, the price of XRP has fallen by almost 50% over the past three days. According to data from CoinMarketCap, the price of XRP fell from $0.60 to $0.29.