Mar 14, 2021 16:15 UTC
Mar 14, 2021 at 16:15 UTC
Just some days after publicizing the termination of its partnership with Moneygram, the fintech firm Ripple Labs is today moving to the position of its stake in the registered company. In a shaving with the U.S. Securities & Exchange Commission, Ripple speaks it has arrived into a contract with Jefferies in which the latter is predictable to perform ‘the orderly disposition of a share of the former’s stake in Moneygram.’
Ripple & Moneygram Partnership Perhaps Reentered
As the filed document clarifies, this agreement orders Jefferies, a U.S. founded expanded financial services company, to ‘sell up to 8,195,123 shares on behalf of Ripple.’ Though, this strategy to divest the stock, which was predictable to have begun on March 11, is set to ‘expire upon the initial of September 30, 2021.’ In that opinion, ‘the extreme amount shall have been sold, or the incidence of sure other customary events affecting the issuer.’
Quite, notwithstanding taking these phases to end the business relationship, Ripple did suggest in a statement that this partnership strength be reentered in the future. The fintech firm held:
We are both committed to reentering our relationship in the upcoming. We still trust in the promise of digital assets & blockchain technology to alter the status quo in worldwide payments for the advantage of billions of customers around the world.
The Consequence of the SEC Lawsuit
After the SEC proclaimed that it was prosecuting Ripple Labs for supposedly violating the U.S Securities Act, the business relationship between Moneygram & the fintech firm developed problematic thus compelling the previous to take act. For example, Moneygram held it has ‘faced logistical challenges in through the stage as well as legal & reputational risks’ after the lawsuit was announced.
Besides, the listed money transfer organization reported revenue losses as a direct consequence of the postponement of its business association with Ripple. On the other hand, Ripple has got its XRP token being delisted by some cryptocurrency exchanges as a consequence of the SEC lawsuit. The fintech firm is also opposite more scrutiny from the SEC as well as extra lawsuit.
Temporarily, despite the mounting tests, Ripple insists it has not dishonored security laws. Already, some primary signs from the SEC/Ripple legal battle apparently propose a tough fight for the regulator.