Ripple wins court case against investor

Ripple Labs repelled a bid by British investment firm Tetragon Financial Group to buy out its stake in the fintech company, Bloomberg reports.

In 2019, Tetragon led Ripple’s Series C financing round of $200 million, when the company was valued at $10 billion.

In January 2021, the British firm through the court demanded that Ripple redeem the preferred shares under the terms of the contract. The plaintiff sought in Delaware to block the California-based company’s use of cash and other liquid assets until payment.

Tetragon took action after the SEC filed a suit against Ripple. Regulator accused the company of selling unregistered securities worth $1.3 billion in XRP tokens.

On Friday, March 5, the court rejected Tetragon’s bid. The judge agreed that, until the SEC case is resolved, XRP’s status remains an open question.

“The SEC still has to try to prove its case in court, but we do not believe they will be able to do so. As our lawyers publicly stated, the SEC is absolutely wrong,” Ripple said.

Earlier in February, the SEC filed an amended version of the complaint, placing emphasis on actions by CEO Brad Garlinghouse and co-founder Chris Larsen.

They called the Commission’s amended complaint “regulatory overreach”.

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