Ripple Now Has One Less Lawsuit to Worry About: Details

Leading crypto payments company Ripple has finally put an end to its legal tussle with global money transfer service provider GCC Exchange.

Although the development was first revealed by GCC Director Yash Rajesh earlier this year, top XRP community member “WrathofKahneman” called attention to the news in a recent tweet.

Ripple Vs. GCC Exchange Lawsuit  

Recall that Ripple sued GCC Remit in July 2023 for failing to fulfill payment obligations for 40,000 XRP transfers worth over $15 million. Apparently, the transaction relates to GCC’s use of Ripple’s On-demand Liquidity (ODL) solution for cross-border settlements.

Notably, Ripple transferred the XRP to GCC under a supply agreement reached by the parties in 2022. However, GCC violated the terms of the agreement following its failure to settle outstanding invoices for 40,000 XRP transfers.

As a result, Ripple sued the company in the High Court of Justice of England and Wales, seeking the payment of outstanding invoices, as well as compensation for the accumulation of late fees.

Parties Settle Multi-Month Lawsuit

In an exciting development, Rajesh disclosed that the parties had agreed on a settlement to end the multi-month lawsuit. Rajesh told openPR in a recent interview that the parties reached a confidential settlement agreement “with no admission of liability.” 

Following the lawsuit’s resolution, GCC Exchange can focus on its strategic vision and continue offering money transfer services globally.

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It is unclear whether GCC will continue to utilize Ripple’s solution or XRP for cross-border payments.

One Less Lawsuit to Worry About

The resolution of the GCC lawsuit is a positive development for Ripple as the number of legal battles it is currently involved in has reduced by one. However, the company is still embroiled in lawsuits against the U.S. SEC and a group of XRP investors led by Vladi Zakinov.

Despite Ripple’s involvement in these two cases, the company focuses more on the SEC lawsuit. The outcome of the SEC case could have a major impact on Ripple’s operations in the United States.

For instance, market analysts and top journalists believe the SEC lawsuit could prevent investment managers from filing for an XRP spot exchange-traded fund (ETF) with the regulator.

As reported earlier, Ripple recorded a partial victory against the SEC last year when a federal court ruled that its programmatic sales and other distributions of XRP did not constitute investment contracts. However, the court declared that Ripple’s past direct institutional sales of XRP violated securities law.

The case is now in the remedies stage, as the parties seek to determine the appropriate penalty for Ripple’s securities law violation.