MoneyGram is currently facing a class-action lawsuit that misled investors using the XRP cryptocurrency.

On behalf of investors who purchased securities from MoneyGram in 2019, law firm Rosen has filed a class-action lawsuit against money transfer company MoneyGram.

The law firm claims that any investor who bought 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, and according to the complaint as follows: :

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 to be an unregistered security and thus illegal.

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The complaint filed by Rosen alleges that investors were harmed and that MoneyGram misled investors about the cryptocurrency XRP and by virtue of the change in perception of XRP, the investors are entitled to compensation.

MoneyGram and its partnership with Ripple:

In late February, MoneyGram announced that it was reversing its partnership with Ripple by temporarily suspending the use of the digital currency XRP on its network.

MoneyGram stops its partnership with Ripple due to the ongoing case

MoneyGram previously partnered with Ripple to leverage XRP for remittance services, resulting in $61.5 million in profits.

MoneyGram has 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 Mexican peso, Philippine peso, Australian dollar and Euro, into another country’s currencies at low cost via the blockchain.

Through the MoneyGram and Ripple 2019-20 partnership, XRP was used on the MoneyGram network to facilitate the transfer of funds.

In 2018, MoneyGram was among the first to experiment with XRP on its network for cross-border money transfer services.

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But with the Securities and Exchange Commission filing a lawsuit against Ripple, and among the charges against Ripple by the regulator that XRP is an unregulated and unregistered security, which led MoneyGram to announce that it stopped using XRP on its platform.

The decision to stop using XRP on MoneyGram may have come too late, as the money transfer company now faces a class-action lawsuit from angry investors alleging that MoneyGram intentionally misled them.

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