Ripple partner MoneyGram gave bad news!

The first hearing of the securities case against Ripple took place today. One of the most striking statements in the hearing is undoubtedly the allegation that Ripple directed to the US Securities and Exchange Commission (SEC).

First Hearing in Ripple Case

Ripple lawyers stated that the SEC met with many cryptocurrency exchanges and cryptocurrency companies regarding XRP in 2019 and before. The critical point of these negotiations was that the SEC did not warn the relevant companies about this, although the Ripple investigation continued at that time.

The SEC argues in the case file that XRP is a security and Ripple has been generating revenue from the sale of it for years. Ripple, on the other hand, emphasized that there is uncertainty about this and that even the SEC is aware of this and does not tell the exchanges that it is actually discussing that XRP is a security.

MoneyGram Abandons Ripple

While this news seems relatively positive for Ripple, there was some pretty bad news from one of the company's biggest partnerships. MoneyGram, where Ripple even bought millions of dollars of shares, will no longer work with Ripple because of the lawsuit.

In the report, which announced the financial balance for 2020 by MoneyGram, it was emphasized that there are no plans to work with Ripple for 2021. MoneyGram emphasized that Ripple will not receive the XRP payments it makes to the payment giant as a market development fee. MoneyGram cited the reason for this as the uncertainty created by the SEC lawsuit.

Partnership Racked Up?

Ripple pays a certain amount of XRP to MoneyGram each period, emphasizing that this is the market development fee. It is among the allegations that MoneyGram even established the partnership in question for this reason. Now, the fact that this income will not be paid and accepted by MoneyGram shows that Ripple's partnership is in theory shelved.

In the statement made by the company, it was also stated that Ripple has received a market development payment of $ 12.1 million so far. It is also unknown whether MoneyGram will be penalized for these in a possible bad result.

The XRP price, on the other hand, rose with relatively good news from the hearing before this development, and is up 3.8% as of the time of this writing. It is seen that XRP price has increased by 10% on the chart of the last 24 hours. How the MoneyGram news will affect Ripple will be clear in the long run.