Ripple, the popular crypto company and fintech giant behind XRP has taken legal action against GCC exchange, the global money transfer company behind the GCC Remit app. Ripple claims that $14.9 million worth of XRP was wrongfully withdrawn by the defendant.
According to information from Law360, issues surrounding payments related to XRP liquidity that was previously provided prompted Ripple to file the lawsuit against the partner of its Singaporean arm.
Read Also: Ripple CTO David Schwartz Discloses Big Deal Hampered By The SEC Lawsuit
The news was also reported by JackTheRippler (@RippleXrpie) in a post on X, with some other members of the XRP community showing support in their replies. Another user, Rookery Heart (@RookeryHeart), added that GCC Exchange didn’t pay Ripple after they saved the payment company millions in fees and now Ripple was coming for those savings.
A High-Stakes Lawsuit
Ripple Labs Singapore Pte Ltd, the Singaporean arm of Ripple Inc., has taken legal action against GCC Exchange, the company responsible for the popular foreign exchange and money transfer application, GCC Remit.
GCC Remit, a part of GCC Exchange, operates as a global cross-border remittance service available in over 100 countries. Additionally, GCC Remit provides a payments API module for merchants. The lawsuit alleges that GCC Exchange failed to pay Ripple for the XRP liquidity transfer made by them. The total amount disputed as reported by Law360 is $14.9 million.
Ripple claims that GCC Exchange refused to settle invoices for more than 40,000 transfers of XRP units which they had successfully withdrawn under a supply deal. This was a breach in the agreement established between GCC Exchange and Ripple in 2022 and in response, Ripple is demanding both the payment of the outstanding invoices and the accumulating sum of late fees.
Read Also: Legal Expert Points Up What Could Make Ripple and SEC Settle Before End of 2023
Law360 reports that the lawsuit was officially filed in July 2023 but had only recently become public knowledge. The lawsuit was filed in the High Court of Justice in England and Wales and none of the parties involved has issued any public statements, leaving the entire cryptocurrency community asking questions.
This lawsuit’s potential effects on GCC Exchange and GCC Remit’s reputation and ability to keep their global operations running are yet to be determined. All of this is happening while Ripple is in the middle of another lawsuit with the SEC and you can get the latest news about that here.
Follow us on Twitter, Facebook, Telegram, and Google News
