Ripple Exits Positions in Bitstamp, MoneyGram, and Tranglo

Ripple has divested its holdings in Bitstamp, MoneyGram, and Tranglo, according to Crunchbase data. These moves mark significant changes in Ripple’s strategic partnerships.

In early 2023, Ripple acquired Pantera’s stake in Bitstamp. The company had also secured a 40% stake in Tranglo back in 2021. Additionally, Ripple invested $50 million in MoneyGram in 2019 to facilitate foreign exchange settlements and cross-border payments. However, this partnership with MoneyGram was halted in 2021 following an SEC lawsuit against Ripple, accusing the company of selling XRP as an unregistered security.

Legal Challenges and Financial Implications

In a notable decision last summer, US District Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP, known as programmatic sales, did not qualify as security offerings, contrary to the SEC’s allegations. However, the judge agreed with the SEC’s assertion that Ripple’s direct sales of XRP to institutional buyers were securities offerings.

Following this, the SEC demanded Ripple to pay approximately $1.95 billion in penalties, which includes $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and another $876,308,712 as a civil penalty. Ripple’s legal team has argued for a significantly lower penalty, suggesting $10 million as a fair representation of the company’s actual gross revenues from institutional sales before the complaint.

The exact timing of Ripple’s divestitures from Bitstamp, MoneyGram, and Tranglo remains unspecified by Crunchbase. These moves highlight Ripple’s strategic shift in response to ongoing legal and regulatory challenges. With these divestments, Ripple may be focusing its resources on navigating the complexities of the SEC lawsuit and ensuring compliance with financial regulations.

Despite these hurdles, Ripple continues to champion the adoption of blockchain technology in financial services. The outcomes of its legal disputes will likely set precedents for the crypto industry, particularly in terms of regulatory standards and compliance.