Ripple Labs Singapore takes legal action against GCC Exchange, alleging the defendant’s failure to fulfill payment obligations regarding XRP transfers.
The Singapore arm of Ripple Inc., Ripple Labs Singapore Pte Ltd, has filed a lawsuit against GCC Exchange, a United Kingdom-based fintech company.
According to a report from Law360, Ripple Singapore contends that GCC Exchange failed to fulfill its financial obligations for more than 40,000 transfers of XRP units amounting to €13.8 million (approximately $14.9 million).
Notably, the transfers were executed within the framework of a supply agreement established by the parties last year. The lawsuit became public recently, despite Ripple Singapore filing the charges in the High Court of Justice of England and Wales in July 2023.
In the filing, Ripple alleges that GCC Exchange breached the agreement terms by neglecting to settle outstanding invoices for its withdrawn XRP units.
Aside from seeking the payment of outstanding invoices, Ripple Singapore also wants GCC to pay additional compensation for the accumulation of late fees.
Meanwhile, Ripple and GCC have refrained from issuing public comments regarding the legal proceedings.
GCC Exchange’s Services
For context, GCC Exchange provides foreign exchange and money transfer services. The company offers cross-border remittance services across more than 100 countries, including the United Arab Emirates (UAE).
Additionally, GCC Exchange offers a payments module API for global merchants, an initiative that makes it a significant player in the fintech sector.
Ripple Labs Still Embroiled in SEC Lawsuit
While Ripple Singapore has taken legal action against GCC Exchange, its parent company, Ripple Inc., is still embroiled in a lawsuit with the US SEC. As reported earlier, Ripple Labs Inc. recently filed its opposition to the SEC’s request for an interlocutory appeal.
In the filing, Ripple Inc. stated that if the court grants the SEC’s interlocutory appeal request, it will also file a cross-appeal on the decision on institutional sales of XRP.
It bears mentioning that the court found Ripple’s direct past sales to institutional investors as an investment contract. The court ruled that institutional XRP investors expected to make profits directly from Ripple’s efforts.
Notably, the SEC has until September 8 to respond to Ripple’s opposition. After the deadline, the court will decide whether to grant the SEC’s request for an interlocutory appeal.