Court documents show that the company Tetragon Financial Group filed a lawsuit against Ripple after the company was indicted by the US Securities and Exchange Commission. The court records indicate that Tetragon and Ripple allegedly reached an agreement, and the SEC case that found XRP classified as an unregistered security should allow them to get money back. In addition, former Ripple executive Jed McCaleb sold 28.6 million XRP weeks after the SEC charges.
Billion Dollar Asset Manager Sues Ripple Labs
A recent court file filed with the Chancery Court in Delaware shows that Tetragon Financial Group (LSE: TFG) is suing California-based Ripple Labs Inc. over an alleged breach of contract. The UK-based investment firm manages $ 2.35 billion (AUM) in assets and seeks to enforce Tetragon’s contractual right to require Ripple to redeem.
Until payment, Tetragon wants Ripple to be prevented from using liquid funds such as cash. After the initial judicial filing, reports suggest that the Vice Chancellor of the Registrar’s Court of Delaware Morgan T. Zurn issued an injunction against Ripple.
The trial reports explain in detail that Zurn issued the resolution after filing in the first week of January attempting to seek Tetragon’s alleged contract law. On January 5th, Ripple Labs Inc. issued a Tetragon filing statement. In essence, Ripple claims the lawsuit is “unfounded” as the SEC case has not been resolved.
“Ripple’s Series C investment agreement provides for Tetragon to have the option to have Ripple repay its Ripple equity if XRP is viewed as a security on a forward basis,” the company wrote. “In the absence of such a decision, this lawsuit has no merit,” she added.
Ripple further explains:
We’re disappointed that Tetragon is trying to wrongly exploit the lack of regulatory clarity here in the US. The courts will provide this clarity and we are very confident in our position.
Jed McCaleb is reportedly giving up 28.6 million XRPs worth over $ 8 million
In addition to the recent judicial filing by Tetragon and the recent decision by the Delaware Chancery Court, former Ripple executive Jed McCaleb reportedly sold 28.6 million XRP this week.
Analyst Leonidas Hadjiloizou, who has been closely monitoring McCaleb’s XRP sales, reported to the public on the Ripple co-founder’s most recent million dollar sale and the ‘Tacostand’ wallet.
“Jeds Taco booth had suspended XRP sales since the SEC lawsuit was announced,” Hadjiloizou said on Monday.
After 25 days of no sales, 28.6 million XRPs were sold today.
Meanwhile, the value of XRP has plummeted since the initial SEC fees and subsequent delistings. At the time of writing, XRP is trading at $ 0.28 per unit and is struggling to stay in the top ten after being ousted in late December.
More recently, Polkadot (DOT) and Cardano (ADA) have supplanted XRP from its previous position in terms of market cap. For the past seven days, XRP has lost -5.55% and -43% over the last month. Despite these declines, XRP’s 90-day stats (+ 12.2%) and annual percentage gains (+ 21.7%) against the USD are still in the green.
What do you think of the Tetragon lawsuit against Ripple and Jed McCaleb that sold 28.6 million XRPs? Let us know what you think on this matter in the comments section below.
Tags in this story
Cardano (ADA), Crypto Exchanges, Delaware, Finance, Jed McCaleb, Leonidas Hadjiloizou, Polkadot (DOT), Ripple, Ripple Lawsuit, SEC, Sec Lawsuit, Termination, Tetragon, The US Securities and Exchange Commission, XRP, XRP -Delisting
Photo credit: Shutterstock, Pixabay, Wiki Commons, Leonidas Hadjiloizou, Twitter,
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