In a recent legal action that came to light on Sept. 4, Ripple Inc.’s Singaporean subsidiary, Ripple Labs Singapore, has taken legal action against well-known forex and money transfer app provider GCC Exchange.
The lawsuit stems from alleged non-payment of XRP liquidity transfers injected by Ripple’s Singapore-based entity.
Ripple Files Lawsuit Over XRP Liquidity Payment Dispute
according to The lawsuit, filed in July 2023 by legal news outlet Law360, alleges that the GCC exchange failed to meet financial obligations for more than 40,000 XRP transfers worth nearly 13.8 million euros (about $14.9 million).
According to the report, the transfers were executed as part of a previous “negotiated supply” agreement between the parties.
Ripple claims that the GCC exchange failed to settle outstanding invoices for the successful withdrawal of XRP “units.” As a result, the lawsuit has been brought to the High Court of England and Wales, showing the seriousness of Ripple’s pursuit of owed funds.
GCC Exchange is a world-renowned foreign exchange and remittance business company. It is behind the GCC Remit brand, which provides cross-border remittance services in more than 100 countries.
The company serves a wide range of clients, including expatriates, migrant workers, students and businesses engaged in cross-border trade. GCC Exchange is committed to providing competitive exchange rates, fast transfer speeds and a seamless user experience through its digital platform, including user-friendly mobile applications.
While neither Ripple nor GCC Exchange has commented on the ongoing legal proceedings, the lawsuit sheds light on the complexities and challenges facing the world of cryptocurrencies and financial transactions.
Ripple’s decision to take legal action underscores the importance of upholding contractual obligations in the rapidly evolving world of digital assets.
The lawsuit between Ripple and GCC Exchange is a reminder that even established entities within the fintech industry must remain vigilant in ensuring financial transactions are transparent and reliable.
As the legal battle progresses, the industry will closely monitor developments in the hope of a fair resolution that maintains the integrity and stability of cryptocurrency transactions.
Currently, XRP is in a macro consolidation phase characterized by sideways price fluctuations. The cryptocurrency had previously experienced a sharp pullback, erasing all of its gains following Ripple Labs’ victory in legal action with the U.S. Securities and Exchange Commission (SEC).
As of writing, XRP is trading at $0.5024, down 0.9% over the past 24 hours. The token is down more than 7.2% over the past seven days.
Despite the downturn, XRP remains the fifth-largest cryptocurrency in the nascent industry.
Featured image via iStock, chart via TradingView.com