- Tetragon, Ripple’s UK-based main investor, requested in January that the court docket have the agency’s most well-liked Sequence C Ripple inventory be redeemed.
- However the court docket has now rejected that request, saying the XRP’s standing is but unsettled.
The investor, British fund supervisor Tetragon Monetary Group, in January demanded to redeem its most well-liked Sequence C Ripple inventory.
However Delaware’s Courtroom of Chancery, the place Tetragon filed the request, ruled on Friday in opposition to the investor’s claims.
Tetragon is a significant investor of Ripple. It led its Sequence C funding spherical in 2019, elevating a complete of $200 million. The corporate couldn’t be reached for remark by press time.
The phrases of that deal included a provision that if is deemed to be a safety, Tetragon “has the choice of getting Ripple redeem their Ripple fairness.”
However the court docket rule mentioned that that query hadn’t been settled.
“XRP isn’t any extra a safety after the SEC filed the enforcement motion than it was earlier than it,” the court docket mentioned. “The enforcement motion, against this, asks that query. The query shouldn’t be but resolved, so a dedication has not but been made.”
“And when it’s made, it will likely be made by the District Courtroom,” mentioned the court docket, referring to the federal district court docket in Manhattan, the place the SEC filed its grievance.
An “opportunistic transfer”
In a statement following the court docket ruling, Ripple described Tetragon’s lawsuit as “an opportunistic transfer to reap the benefits of the SEC’s allegations.”
“What has at all times been clear (and made so much more in the present day) is that the SEC nonetheless has to attempt to show their case in Courtroom; which we don’t imagine they may have the ability to do. As our legal professionals have mentioned publicly, the SEC is ‘lifeless improper!’”
On the offensive
First, that XRP doesn’t exhibit any of the standard traits of an funding contract, his authorized counsel claimed. And second, that Garlinghouse’s sale of his private XRP holdings doesn’t quantity to aiding and abetting Ripple’s XRP gross sales.
The SEC is but to reply.
So, whereas Ripple has received the authorized battle in opposition to its investor, the SEC v Ripple saga is much from over. And because it continues to unfold, the investor’s spat with Ripple may simply resurface.
The views and opinions expressed by the creator are for informational functions solely and don’t represent monetary, funding, or different recommendation.