Ripple, the parent company of XRP, not new to controversy, is in the news again. The crypto payment company has reportedly blocked a bid from one of its leading investors, Tetragon, who was looking to cash out on $175 million worth of stock in the crypto company. Tetragon Financial Group had demanded its stock investment fund earlier in January and confirmed that Ripple had blocked their request. The rumors surrounding the blocking of Tetragon from withdrawing their stocks by Ripple are believed to be fuelled by Ripple’s ongoing trials with the U.S SEC.
The court ruled out against Tetragon
The claims of Tetragon have now been ruled out by the Court of Chancer in Delaware, with the court ruling that the British fund manager’s claim was invalid. Tetragon was part of the venture capital that raised more than $200 million in Series C funding for Ripple two years ago. That automatically places the British fund managers as one of the largest investors in RIpple.
The terms of the Series C funding included a clause that allows Tetragon to redeem their share value in Ripple, should XRP be considered a security. Surprisingly, Tetragon is now filing a case to withdraw their Ripple shares, as the court had deemed XRP security a month before their filing. Unfortunately for the British fund managers, the court had ruled out the case against Ripple, believing that XRP is not securities at the moment, as the case is still under trial in court. The court had now ruled out the case and has informed Tetragon that the case will likely be reviewed after Ripple and the U.S SEC have come into an agreement under the law on the classification of XRP.
Ripple can breathe, at least for now
In response to Tetragon’s filling, Ripple has fired back at how disappointed they are at the British fund managers. Ripple believes that Tetragon wants to take advantage of the SEC allegations against them to rip them off. Ripple believed that the U.S SEC case against it had been handled unfairly with too much Bias. In Ripple’s official response to Tetragon’s filling, Ripple explained that their legal team is currently working to resolve each of the false allegations labeled against them by the U.S SEC, and they insist they are innocent.
Early last week, Brad Garlinghouse, Ripple’s CEO, was reported to have submitted two statements against the SEC rulings to the court. Garlinghouse and the Ripple team believe that the court should dismiss the case, as all evidence suggests that RIpple is not guilty of any of the charges. However, the Ripple team is delighted that Delaware’s Court of Chancery has moved against the opportunistic actions of Tetragon, who is believed to wanting to profit off an uncertain situation. While that is good news enough for now at Ripple, the legal tussle between Ripple and the U.S SEC is still far from being over. According to Garlinghouse, everyone at Ripple can not wait for everything to be over, and normalcy returns to Ripple and XRP.