On September 4, Ripple Labs Singapore, Inc.’s Singapore-based business, filed legal action against GCC Exchange, a renowned foreign exchange and money transfer software provider. The move is based on alleged non-payment difficulties with XRP liquidity transfers made by Ripple’s Singapore business.
According to the legal news source Law360, the complaint filed in July 2023 claims that GCC Exchange failed to meet its payment obligations for more than 40,000 XRP transfers, totaling about €13.8 million (around $14.9 million). These transfers were carried out under a previously agreed-upon supply arrangement between the parties.
Ripple claims that GCC Exchange has not paid outstanding invoices for withdrawing XRP units, prompting Ripple to file a case in the High Court of Justice of England and Wales, signaling Ripple’s desire to recoup the monies.
GCC Exchange is a well-known global player in the foreign exchange and money transfer industries, operating under the GCC Remit name and providing cross-border remittance services in over 100 countries. Its services are available to many customers, including expatriates, migrant workers, students, and cross-border businesses. Through digital channels, including a user-friendly mobile app, GCC Exchange stresses cheap exchange rates, fast transfer times, and a seamless user experience.
While neither Ripple nor GCC Exchange have commented on the continuing legal procedures, this case shows the intricacies and problems in the cryptocurrency and financial exchange market. Ripple’s decision to take legal action emphasizes the importance of adhering to contractual obligations in the ever-changing digital asset market.
The legal battle between Ripple and GCC Exchange serves as a reminder that even established businesses in the fintech industry must maintain vigilance to ensure transparent and reliable financial transactions. As the court struggle continues, industry observers will watch events to reach a fair settlement that preserves the integrity and stability of Bitcoin transactions.
XRP is now in a macro consolidation phase, defined by horizontal price moves. This comes after a considerable drop that reversed all gains gained following Ripple Labs’ court victory against the US Securities and Exchange Commission (SEC).
At the time of writing, XRP is trading at $0.5024, a 0.9% fall in the previous 24 hours. The token has dropped by more than 7.2% in the last seven days. Despite this decline, XRP remains the fifth-largest cryptocurrency in the business.