L in 2019:

“MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”

MoneyGram suspended the partnership with Ripple in late February after the U.S. Securities and Exchange Commission filed a complaint against Ripple Labs alleging securities violation in December 2020.

Rosen alleges that MoneyGram failed to disclose that XRP was viewed as an unregistered and unlawful security by the SEC.

Additionally, in the event that the SEC decided to enforce securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial result, Rosen added:

As a result, defendants’ public statements were materially false and/or misleading at all relevant times.


Accordingly, a reconciliation of the non-GAAP financial measures to the equivalent GAAP financial measures for projected results is not available.

We believe that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations. These calculations are commonly used as a basis for investors, analysts and other interested parties to evaluate and compare the operating performance and value of companies within our industry. Finally, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, constant currency, diluted adjusted income (loss) per share and adjusted net income figures are financial and performance measures used by management in reviewing results of operations, forecasting, allocating resources or establishing employee incentive programs.

DALLAS, Feb. 22, 2021 /PRNewswire/ — MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its fourth quarter and full-year ended December 31, 2020.

Fourth Quarter 2020 Business Highlights

“We delivered strong financial results in the fourth quarter led by record digital growth and significant outperformance on expenses. Despite a year filled with unprecedented challenges, our dedicated employees rallied together to deliver the industry’s best customer experience, rapidly accelerate digital growth, and expand key partnerships,” said Alex Holmes, MoneyGram Chairman and CEO.”

Holmes continued: “The combination of these efforts generated tremendous value for customers and shareholders alike.

Moneygram moneygram ripple february security

• the financial health of certain European countries or the secession of a country from the European Union;

• our ability to manage credit risks from our agents and official check financial institution consumers;

• our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others;

• our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses;

• any restructuring actions and cost reduction initiatives that we undertake may not deliver the expected results and these actions may adversely affect our business;

• our capital structure;

• and uncertainties described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of MoneyGram’s public period reports filed with the U.S.


Ripple#XRP MoneyGram filed an unopposed Motion to Seal a few lines from a deposition transcript of an officer of MoneyGram containing nonpublic information related to MoneyGram’s business strategies and operations. pic.twitter.com/mZsRqCcM6Z

— James K. Filan 🇺🇸🇮🇪 107k (beware of imposters) (@FilanLaw) July 29, 2022

The party seeks to redact digital wallet information akin to “financial account numbers”. This is echoed previously in a redaction proposed by Ripple.
The same party filed a sealed letter for Judge Torres identifying the exhibits which subject to its sealing requests. Case onlookers will be quick on the matter to seek out the party for a clear inspection. Crowd chatter was instigated as soon as the tweet was released.

What next?

In the coming four days, we will get a ruling on the parties’ motions to seal the expert challenges.


The formal end of the partnership comes a month after MoneyGram suspended trading on Ripple’s platform over concerns about the latter’s legal tussle with the SEC.

In 2019 Ripple agreed to invest up to $50 million in MoneyGram as part of a two-year partnership that has seen the old-school money transfer player tap the blockchain startup’s XRP digital currency for cross-border payment and foreign exchange settlement.

Ripple has effectively been paying MoneyGram to use its on-demand liquidity service, with the money transfer outfit seeing a “net expense benefit” of $12.1 million from Ripple market development fees in the first quarter of 2020.

However, late last year the SEC filed a regulatory lawsuit against Ripple Labs Inc.

Total digital, which includes MGO, had year-over-year transaction growth of 94%in the fourth quarter

◦ Digital revenue reached a new record of$57.4 million for the fourth quarterrepresenting a 79%year-over-year revenue growth rate

◦ Digital partnerships delivered transaction growth of 77% year-over-year

◦ Account deposit and mobile wallet transactions increased 140% year-over-year

Digital transactions accounted for 28% of all money transfer transactions in the fourth quarter

During the quarter, the Company reported a number of strategic achievements:

◦ As part of the Company’s focus to invest in major receive markets, MoneyGram expanded its real-time direct to account transfer capabilities led by Visa Direct.

▪ Visa Direct posted record transactions on 650% growth for the 4th quarter.

• our offering of money transfer services through agents in regions that are politically volatile;

• changes in tax laws or an unfavorable outcome with respect to the audit of our tax returns or tax positions, or a failure by us to establish adequate reserves for tax events;

• our substantial debt service obligations, significant debt covenant requirements and credit ratings;

• major bank failure or sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions;

• the ability of us and our agents to maintain adequate banking relationships;

• a security or privacy breach in systems, networks or databases on which we rely and disruptions to our computer network systems and data centers;

• weakness in economic conditions, in both the U.S.

Since the beginning of the year, there has been a notable decline in cryptocurrency prices, but this has not severed the adoption of these assets.

Besides El Salvador, the Central African Republic also accepts the use of Bitcoin as legal tender. The country recently passed the Bitcoin law, creating an opportunity for cross-border payment service providers that want to tap into this new audience.

Russia could also be bracing for the use of cryptocurrencies for international payments. Government officials in the country have proposed using cryptocurrencies to facilitate international payments.

MoneyGram International, one of the largest cross-border payment service providers globally, has announced a strategic deal with the Stellar blockchain. The deal involves creating a platform for stablecoins that will facilitate money transfers.

MoneyGram and Stellar have been working together since last year. Before working with Stellar, MoneyGram previously worked with Ripple but halted the partnership because of the lawsuit filed against Ripple and its executives by the United States Securities and Exchange Commission.

MoneyGram to set up stablecoin transfer platform with Stellar

MoneyGram is partnering with Stellar to create a money transfer platform based on stablecoins.

With this new service, it will be possible for users of the Stellar wallet to send the USDC stablecoin to the intended recipients.

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