The Fintech firm Ripple Labs has dissolved it's Partnership with Moneygram. Afew days after the announcement, Ripple Labs filled.
A few days after the announcement, a motion recognized by U.S. SEC was filed by Ripples Lab, that Moneygram is to offset a portion of the former's stake.
As at the time of writing this news, the following information was gathered;
Ripple Labs has dissolved it's Partnership with Money.
Following the dissolution was a motion filed to the U.S. SEC, that
That Jefferies a U.S. based diversified financial service company is mandated to sell up to 8,195,123 shares on behalf of Ripple; with the aim of offloading the stock.
But information has it that the stock we're expected to be offloaded on March 11, and expire by earliest 30 September. At that period the maximum amount must have been sold or the occurrence of certain other customary events affecting the issuer.
With respect to the severing of relationship between Ripple and Money , there was a statement with regards to revisitation of the partnership, and this evident in Fintech Firm's statement " that we are both committed to revisiting our relationship in the future. We still believe in the promise of digital assets and blockchain technology to change the status quo in global payment for the benefit of billions of customers around the world.
The business relationship between Moneygram and Fintech has become difficult after the announcement by SEC that it was suing Ripple Labs for allegedly violating the U.S. Securities Act. Furthermore this has forced Ripple Labs to take action, for instance Moneygram said it has faced logistical challenges in using the platform as well as legal and reputational risks after the lawsuit was pronounced.
Other important updates from the news include; that the listed Moneygram transfer organization reported revenue losses as a direct result of the suspension of it's business relationship with Ripple.
Irrespective of the on-going challenges, Ripple insisted that it has not violated security laws. Already some early signs from SEC/Ripple legal bottles seemingly suggest a rough fight to the regulator.
What are thoughts on the end of business relationship between Moneygram and Ripple Lab mean for blockchain technology?
