Bitcoin competitor must pay a large penalty

Ripple LabsUS start-up Ripple Labs, specializing in money transfers and creator of the virtual currency XRP, have to pay a penalty of $ 700,000. Ripple did not comply with requirements to combat money laundering, said the US Department of Justice. After investigation of the daughter XRP II LLC, the company had agreed to pay the penalty.

The currency XRP has, estimates of, reached a value of 253 million dollars and is now the second most important currency after the better-known Bitcoin. According to Ripple the technology facilitates payment transactions across the globe. Banks and other customers could pay more quickly, and with less risk and lower cost than today.

Invested in Ripple have investors from Silicon Valley as Andreessen Horowitz, Google Ventures, IDG Capital or Lightspeed Venture Partners. The former German Minister Karl-Theodor zu Guttenberg was entered by its own account last summer as a consultant at Ripple Labs. He wanted to help the company, “the regulatory pitfalls to circumvent” Guttenberg said at the time of the “Wirtschaftswoche”.

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