Court documents show the company, Tetragon Financial Group, filed a lawsuit against Ripple after the company was charged by the U.S. Securities and Exchange Commission. The court filing states that Tetragon and Ripple are alleged to have made a deal, and an SEC case that views XRP as an unregistered security should allow them to get money back. Moreover, weeks after the SEC allegations, former Ripple executive Jed McCaleb sold 28.6 million XRP.
Sues Ripple Labs Billion-Dollar Asset Manager
A recent court filing filed with the Delaware Court of Chancery shows that Tetragon Financial Group (LSE: TFG) is suing the Ripple Labs Inc. of California over breach of treaty allegation. The UK investment company has assets worth $ 2.35 billion under management (AUM) and the company is seeking to “enforce its contractual right to require Ripple to redeem” stocks held by Tetragon.
Until paid, Tetragon wants Ripple to be stopped from leveraging liquid assets as cash. Following the initial court filing, reports indicate that Delaware Chancery Court Vice Chancellor Morgan T. Zurn has issued a temporary restraining order against Ripple.
Litigation reports indicate that Zurn issued the order after the filing in the first week of January that sought Tetragon’s alleged contractual right. On January 5, Ripple Labs Inc. announced. statement about the Tetragon Filing. Essentially, Ripple claims that the lawsuit has “no merit” because the SEC’s case has not been decided.
“In the Ripple Series C investment agreement, there is a provision that, if XRP is deemed to be security on a going-forward basis, then Tetragon has the option of having Ripple repay its Ripple equity,” the company wrote. “As no such decision has been reached, this lawsuit has no merit,” he added.
Ripple further explained:
We are disappointed that Tetragon is trying to unfairly 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 Alleged Dumps 28.6 Million XRP Worth Over $ 8 Million USD
In addition to the recent court filing by the latest Tetragon and Delaware Chancery Court decision, Ripple’s former executive, Jed McCaleb, apparently sold 28.6 million XRP this week.
Analyst Leonidas Hadjiloizou has consistently monitored McCaleb’s XRP sales he told the public for the latest million-dollar sale from cofounder Ripple and the ‘Tacostand’ wallet.
“Tacostand Jed had delayed XRP sales ever since the SEC lawsuit was announced,” Hadjiloizou said Monday.
After 25 days of no sales, 28.6 million XRP were sold today.
Meanwhile, the value of XRP has dropped significantly since the initial SEC charges and the delicacies that followed. At the time of publication, XRP is trading at $ 0.28 per unit and has been struggling to stay in the top ten after being displaced in late December.
More recently, polkadot (DOT) and cardano (ADA) have pushed XRP from its previous position in terms of market capitalization. In the last seven days, XRP has lost -5.55% and -43% over the past month. Despite these declines, 90-day XRP 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 that Jed McCaleb claimed 28.6 million XRP sales? Let us know what you think of this topic in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Leonidas Hadjiloizou, Twitter,
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