Tetragon Capital sues Ripple! Tetragon Capital sues Ripple – they were the lead investor in Ripple’s $200 million Series C round. They filed the complaint on January 4th, in Delaware Chancery Court, and is looking to enforce their contractual right that requires Ripple to redeem the Series C stock.
Tetragon is looking to block Ripple from using cash or other liquid assets until the payment is made – in addition, they’ve asked the court for a temporary restraining order, a preliminary injunction, and an expedited trial.
Ripple had this to say:
In Ripple’s Series C investment agreement, there is a provision that if XRP is deemed to be a security on a go forward basis, then Tetragon has the option of having Ripple redeem their Ripple equity. Since there has been no such determination, this lawsuit has no merit. We are disappointed that Tetragon is seeking to unfairly take advantage of the lack of regulatory clarity here in the U.S. The courts will provide this clarity and we are very confident in our position
This is the first major lawsuit against Ripple since the SEC sued Ripple Labs Inc. for conducting a $1.3 billion unregistered securities offering. The SEC has had eight years to build a case against Ripple – the chances of their escaping the claws of the SEC are extremely slim.
Ever since the news broke that the SEC was suing Ripple Labs, several exchanges and OTC desks have made announcements that they would no longer support XRP trading pairs.
The Southern District Court of New has scheduled Ripple’s initial pretrial conference. The event, scheduled for 10:00 on February 22nd, will give us all a first look into Ripple’s battle against the SEC.
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