XRP has once again lost its place as the fourth largest cryptocurrency. Lawsuits against Ripple increased after one of its major investors followed the SEC in filing a complaint against the project.
Tetragon, a major investor in a $ 200 million Series C round of funding for Ripple in 2019, has filed a complaint against the company with the Delaware Chancery Court, according to a January 6 report by Bloomberg.
The investment company claims it is seeking a court of law to “enforce its contractual right to order Ripple to redeem” Series C preferred stock held by Tetragon. In addition, the company is seeking the court to prevent Ripple from using “cash or other liquid assets” until the matter is resolved.
Ripple responded to the allegations, alleging the lawsuit was “unfounded,” and Tetragon accused of exploiting “the lack of clarity of regulations” in the United States in filing the lawsuit.
The company’s executives have previously criticized US regulators – suggesting the company would move its headquarters offshore to escape “US regulation”.
Amid lawsuits from both the US Securities and Exchange Commission and Tetragon, XRP has lost its position as the fourth largest cryptocurrency by market capitalization. According to CoinMarketCap, XRP’s $ 10.3 billion market cap is behind Litecoin’s $ 10.5 billion, with LTC growing 26% in the past seven days while XRP’s market cap is growing has stagnated. Litecoin “flipped” XRP for the first time on Sunday, but it was a short-lived move.
In December, the SEC hired Brad Garlinghouse, CEO of Ripple, and Chris Larsen, co-founder, to conduct an “unregistered, ongoing offering of digital asset securities” for their XRP sales. The case is scheduled for a virtual pre-conference in February.
After the news, crypto exchanges like Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy and CrossTower have distanced themselves from XRP. Some have announced they will suspend trading in XRP, while others will delist the token entirely.
At the time of writing, XRP is priced at $ 0.22 after falling 70% since late November.
Cointelegraph asked Tetragon for comment, but received no response at the time of publication.