Per data from Law360, a top-notch legal news agency, problems with payments for previously injected XRP liquidity made U.S. fintech decacorn Ripple sue the partner of its Singapore-incorporated entity.
$14,900,000 at stake: Ripple files lawsuit over forex platform and transfer app
Ripple Labs Singapore Pte Ltd, the Singapore unit of Ripple Inc., filed a lawsuit against GCC Exchange, an entity behind a popular foreign exchange and money transfer app. Per the lawsuit, GCC Exchange allegedly failed to pay for the transfer of XRP liquidity made by the Singapore-based firm. The volume of transfer in question is almost €13.8 million, or $14.9 million, the publication by Law360's William Janes says.
?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 alleges that GCC Exchange failed to pay invoices for over 40,000 transfers of XRP "units" that it successfully withdrew within the framework of a supply deal.
As such, the platform for FX trading and money remittances broke the deal scored between GCC Exchange and Ripple Labs Singapore Pte Ltd in 2022. Ripple asks the defendant to both pay the sum of the invoices and an "ever-growing" amount of late fees.
As explained by Law360, the lawsuit was filed in July 2023, but it was made public only recently. Both Ripple and GCC Exchange failed to comment on ongoing developments.
Ripple has sued in the High Court of Justice of England and Wales, the publication says.
GCC Remit is a brand of GCC Exchange's global cross-border remittances provider. Its services are available in 100+ countries. GCC Remit also has a payments API module for merchants.
XRP pump, inspired by Ripple's legal win, almost erased
As covered by U.Today previously, on July 13, 2023, Ripple Inc. scored a landmark victory in a U.S. court. Ripple Labs Inc did not violate security trading regulations by selling its XRP tokens on exchanges to American citizens.
This is the most crucial positive development for Ripple during the almost three-year legal battle with the U.S. SEC. Immediately after the announcement of the court order, XRP's price jumped by over 70% to levels unseen since mid-February 2022.
However, by press time, the price of XRP is back to pre-run levels. In August 2023, the SEC asked the judge to grant an immediate appeal regarding XRP's security status.