Tetragon Financial Group filed a lawsuit against Ripple. In 2019 it led a $200 million Series C funding round when the XRP issuer was valued at $10 billion.
Oof. Ripple has been sued by a shareholder after the SEC claimed its XRP tokens were sold improperly. Tetragon was an investor in Ripple’s Series C round, which gave it a $10 billion valuation. Now it wants to sell the stock back to Ripple. https://t.co/mbQQriwVKU
— Ryan Browne (@Ryan_Browne_) January 5, 2021
Tetragon demands that Ripple redeem the preferred shares under the existing contract. The plaintiff asks a Delaware court to bar the defendant from using any liquid assets until the redemption and to apply expedited proceedings.
Ripple said the contract with Tetragon contemplates the return of funds if XRP is deemed a security in the United States, which has not yet happened.
This is a baseless lawsuit. Tetragon is trying to opportunistically exploit regulatory uncertainty in the United States.
Our statement regarding Tetragon’s filing: https://t.co/eHrq2v89WO
— Ripple (@Ripple) January 5, 2021
On January 5, Grayscale Investments removed XRP from the Digital Large Cap Fund trust and sold all tokens in favor of the remaining cryptocurrencies. Earlier, a similar decision was taken by Bitwise and 21shares.
4/ For more information on the removal of $XRP, please visit: https://t.co/5e8pglYM3B
— Grayscale (@Grayscale) January 5, 2021
According to Coin Metrics, since the filing of the lawsuit by the U.S. Securities and Exchange Commission (SEC), the number of addresses with 1 million XRP decreased from 1,721 to 1,567.
As reported, the SEC accused Ripple of selling $1.3 billion of unregistered securities over seven years. Preliminary hearings will take place on February 22, 2021.
This is not the first lawsuit against the company; it has been in litigation with investors who consider XRP an unregistered security. Ripple and Garlinghouse are named as defendants in the Bitcoin Manipulation Abatement LLC suit, which is overseen by attorney Pavel Pogodin.
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