Tetragon monetary cluster is suing Ripple for redemption of Series C preference shares.
In a transient statement, Ripple unemployed the cause as while not benefit.
Following the SEC cause against Ripple Labs for merchandising unregistered security, the dangerous news for the corporate isn’t subsiding. With Tetragon monetary cluster, one in every of the most investors has filed a suit. Among different things, to “enforce its written agreement right to need Ripple to redeem Series C stock. The suit filed by the U.S is the legal basis for the redemption. Securities and Exchange Commission.
Major investor sues Ripples
The UK-based investment firm led Ripple’s 200 million Series C funding round in December 2019. XRP ledger and XRP token were improved and expanded by the funds raised at the time.
As Bloomberg reported , Tetragon filed the cause against Ripple Labs in Delaware Chancery Court on weekday. Additionally to redeeming the funds, Tetragon is additionally asking that Ripple prohibits the use of money till payment is formed.
In addition, the nondepository financial institution asked the court for a restraining order, a preliminary injunction and an expedited trial. In support of the requests are sealed the briefs.
Ripple dismisses the filing as baseless
In a brief and terse response to Tetragon’s lawsuit, Ripple dismissed any legal basis for the claim. In the payment solutions company, there is a clause stating Tetragon has the option of having Ripple redeem their equity. By Ripple if XRP is classified as a security on a go-forward basis.
Since there has been no such determination, this cause has no benefit,” the official statement aforementioned. Additionally, Ripple conjointly expressed its disappointment with this action:
We are frustrated that Tetragon is making an attempt to exploit the dearth of restrictive clarity here within the US. The court giving that clarity assures us of our position .
As CNF reported , the primary pretrial date for the SEC v. Ripple case is ready for Feb. 22. consistent with Abra corporate executive Bill Barhydt, it’s possible that the court battle with the U.S. Securities and Exchange Commission will settle due to mistakes created by both side. Specially, the SEC’s prolonged hesitation and inaction argue against the SEC winning in court. “They ought to have settled this six years agone,” Barhydt aforementioned.