Ripple Labs Singapore Pte Ltd, the Singapore-based branch of Ripple Inc., has initiated legal action against GCC Exchange, the entity responsible for a widely-used foreign exchange and money transfer application. According to the lawsuit, GCC Exchange allegedly failed to fulfill payment obligations related to the transfer of XRP liquidity facilitated by the Singaporean company. The disputed amount involved in these transfers is nearly €13.8 million, equivalent to $14.9 million, as reported by Law360’s William Janes.
🚨JUST IN: Ripple is suing a U.K. currency exchange and money transfer business for almost €13.8 million ($14.9 million) at a London court, alleging that it has failed to pay invoices.
— JackTheRippler ©️ (@RippleXrpie) September 4, 2023
Ripple’s claims revolve around GCC Exchange’s purported failure to settle invoices for more than 40,000 transfers of XRP “units,” all of which were successfully executed under the terms of a supply agreement. Consequently, this legal dispute signifies a breach of the agreement established between GCC Exchange and Ripple Labs Singapore Pte Ltd in 2022. In its legal action, Ripple not only seeks the settlement of the outstanding invoices but also demands the payment of accumulating late fees.
It’s worth noting that this lawsuit, initially filed in July 2023, has only recently been disclosed to the public. Both Ripple and GCC Exchange have refrained from commenting on the ongoing legal proceedings. The lawsuit has been brought before the High Court of Justice in England and Wales, according to the report. GCC Remit operates as the global cross-border remittance provider under the GCC Exchange umbrella, extending its services to over 100 countries. Additionally, GCC Remit offers a payments API module tailored for merchants.
In a notable legal development, Ripple Inc. achieved a significant victory in a U.S. court on July 13, 2023. The court ruled that Ripple Labs Inc. did not violate securities trading regulations by selling XRP tokens on exchanges to U.S. citizens. This ruling represents a pivotal moment for Ripple, marking a positive turn in its nearly three-year-long legal battle with the U.S. SEC. Following the court’s decision, XRP’s price surged by over 70%, reaching levels not seen since mid-February 2022. However, as of the current press time, XRP’s price has retraced to levels resembling those prior to the price surge. In August 2023, the SEC requested the judge to grant an immediate appeal regarding XRP’s classification as a security.
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