- Tetragon, a company that led a $200 million Series C round for Ripple in 2019, is now suing Ripple
- Tetragon’s lawsuit comes after the SEC sued Ripple, alleging that XRP is a security
- Ripple says that XRP hasn’t been deemed a security, leaving Tetragon’s lawsuit with no merit
Ripple investor Tetragon is now suing the company and wants its shares redeemed
Investment company Tetragon, who led Ripple’s $200 million Series C investment round in 2019, is now suing Ripple in an attempt to have the company redeem the Series C preferred stock owned by Tetragon. According to a Bloomberg report, Tetragon is seeking to »block Ripple from using any cash or other liquid assets until the payment is made«.
Ripple posted a brief response to Tetragon’s lawsuit in a post on its official website, saying that Tetragon has the right to redeem their equity in Ripple in the event that the XRP cryptocurrency is »deemed to be a security on a go forward basis«. However, the company added that since XRP hasn’t been determined to be a security, Tetragon’s lawsuit is meritless. Ripple’s post concludes:
»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.«
Tetragon’s lawsuit is a consequence of the Securities and Exchange Commission’s lawsuit against Ripple, in which the agency is alleging that Ripple’s XRP sales are an unregistered securities offering. Meanwhile, Ripple maintains that XRP is not a security, and will be looking to prove its case in court.
Tetragon’s lawsuit against Ripple is another in a series of negative developments following the SEC’s lawsuit against Ripple. XRP cryptocurrency is down 57% in the last month despite Bitcoin gaining over 80% in the same period, making XRP by far the worst performer in the cryptocurrency top 50. After the SEC made it public that it considers XRP to be a security, a host of cryptocurrency exchanges responded by either delisting XRP completely or limiting their XRP-related services.
Interestingly enough, XRP has been showing some signs of life today, gaining about 11% in the last 24 hours. News of the Tetragon lawsuit didn’t seem to have much of an impact on the XRP markets, with the price continuing to range between $0.20 and $0.25.
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