In a legal battle that has recently come to light on September 4, Ripple Labs Singapore, the Singapore arm of Ripple Inc., has taken legal action against GCC Exchange, a well-known foreign exchange and money transfer app provider.
The lawsuit stems from alleged non-payment issues concerning the transfer of XRP liquidity injected by Ripple’s Singapore-based entity.
Ripple Files Lawsuit Over XRP Liquidity Payment Dispute
According to Law360, a legal news agency, the lawsuit filed in July 2023 claims that the GCC Exchange failed to fulfill its financial obligations for over 40,000 XRP transfers, amounting to nearly €13.8 million or approximately $14.9 million.
Per the report, these transfers were executed as part of a previously “agreed-upon supply” deal between both parties.
Ripple alleges that GCC Exchange has neglected to settle outstanding invoices for successfully withdrawing XRP “units.” As a result, the lawsuit has been submitted to the High Court of Justice of England and Wales, indicating the seriousness of Ripple’s pursuit to obtain the owed funds.
GCC Exchange is a prominent global foreign exchange and money transfer business. It is behind the GCC Remit brand, which offers cross-border remittance services in over 100 countries.
The company’s services cater to many customers, including expatriates, migrant workers, students, and businesses engaged in cross-border trade. GCC Exchange strives to provide competitive exchange rates, swift transfer speeds, and a seamless user experience through its digital platforms, including a user-friendly mobile app.
While both Ripple and GCC Exchange have refrained from commenting on the ongoing legal proceedings, the lawsuit sheds light on the complexities and challenges faced within the cryptocurrency and financial exchange landscape.
Ripple’s decision to pursue legal action underscores the importance of upholding contractual obligations in the rapidly evolving world of digital assets.
This lawsuit between Ripple and GCC Exchange serves as a reminder that even well-established entities within the fintech industry must remain vigilant in ensuring transparent and reliable financial transactions.
As the legal battle progresses, the industry will closely monitor the developments, hoping for a fair resolution that upholds the integrity and stability of cryptocurrency transactions.
Currently, XRP is in a macro consolidation phase characterized by a period of sideways price movements. This comes after the cryptocurrency experienced a significant retreat, erasing all its gains following Ripple Labs’ legal victory against the United States Securities and Exchange Commission (SEC).
As of the time of writing, XRP is trading at $0.5024, reflecting a decrease of 0.9% within the past 24 hours. Over the past seven days, the token has declined by more than 7.2%.
Despite this downturn, XRP remains the fifth-largest cryptocurrency within the burgeoning industry.
Featured image from iStock, chart from TradingView.com