MoneyGram Now Facing Class-Action Suit Despite Cutting Ties With Ripple

MoneyGram has gotten slammed with a class-action lawsuit for allegedly misleading investors with Ripple (XRP) sales. Rosen Law Firm announced that it is filing a class-action lawsuit against the payments solution company on behalf of investors who bought MoneyGram securities in 2019.

The law firm noted that investors who bought MoneyGram shares between June 17, 2019, and February 22, 2021, are entitled to compensation from the company, considering that MoneyGram partnered with Ripple Labs. Ripple is currently battling a suit with the SEC for allegedly offering unregistered securities through the sale of XRP.

The Rosen Law Firm complaint alleges that: “Defendants made false and/or misleading statements and/or failed to disclose that XRP, the cryptocurrency that MoneyGram was utilizing as a part of its Ripple partnership, was viewed as an unregistered and therefore unlawful security by the SEC.”

Meanwhile, just a few weeks ago, MoneyGram announced that it was suspending its ties with Ripple and momentarily halting the use of XRP on its network. The payment behemoth received payment from Ripple to leverage XRP for remittance services. XRP got used to convert a variety of foreign currencies in a secure manner and at a low cost via its blockchain.

Although MoneyGram was quick to cut ties with Ripple after the SEC lawsuit, it did not stop investors from rallying behind a class action suit, claiming that the company knowingly misled them.

Key XRP Levels to Watch — March 3

XRP has been trading within a range between $0.4500 and $0.4000 for the past week, as the cryptocurrency market got dominated by bears. That said, it appears that bulls are starting to take control, once again, with XRP challenging the $0.4500 resistance.

A break above the $0.4500 could take the cryptocurrency to $0.5000 and higher in the coming hours. However, XRP currently lacks any trading volume of volatility, thereby making a sharp move upwards troublesome. This means that we could see the seventh-largest cryptocurrency consolidate around the $0.4500 area for a bit.

Nonetheless, a fall below the $0.3838 seems very unlikely at the moment.

Meanwhile, our key resistance levels are at $0.5400, $0.6000, and $0.6374. While our key support levels are at $0.4524, $0.3838, and $0.3500.

Total Market Capitalization: $1.57 trillion

XRP Market Capitalization: $20.3 billion

XRP Dominance: 1.3%

 

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