A retweet by Ripple’s attorney (Jeremy Hogan) revealed that the firm has won its legal battle with the Tetragon financial group. Jeremy retweeted James Filan’s tweet yesterday evening to reveal the joyful news. The tweet by Filan contained an attached copy of the order and final judgment from the Delaware Chancery Court which displays proof of the company’s win in the lawsuit.
Hogan further revealed that this case has cost Ripple labs more than $3 million in litigation costs. He also stated that it is now mandatory for Tetragon to pay Ripple in less than five days from yesterday when the final judgment was passed. He explained this in a second tweet, saying “I presume that there is a clause in Ripple’s contract with Tetragon which mandates that the loser of the case would bear the costs of attorney fees for both sides. Legal proceedings are usually risky and Tetragon now has to pay lawyers from both sides and satisfy contractual obligations.”
What Caused the Legal Imbroglio?
The lawsuit started in January when Tetragon instituted legal action against Ripple for failing to buy $175 million of its shares in a 2019 agreement between the two companies. A case that made Ripple’s lawyers term Tetragon as opportunists; the security and exchange commission also claimed that Ripple has generated more than $1 billion from selling XRP for over six years counting from 2013. Hence, the company has breached the country’s securities act of 1933. A statement from Ripple read “the intentions of sec from the get-go has been clear – to prove that XRP is a security. They are yet to prove it, and they won’t prove it because XRP is not a security” and thus far, that has been the case.
During that period, Tetragon had filed a suit with the Delaware chancery court to forcefully stop Ripple from performing any transactions till it repurchased over $170 million worth of the shares it had previously put on offer.
Ripple’s 2019 Funding Round
During Ripple’s 2019 funding round, Tetragon was one of the top investors in Ripple during that funding round. The leading funding company during that period was the Tokyo-based strategic business innovator group. However, it is to be noted that the company was already in a JV partnership with Ripple before that funding round.
Ripple was able to raise $200 million during that series c funding which made the company’s estimated worth to be about $10.5 billion. It has to be noted that Ripple labs didn’t have any issues with other investors from that series funding or previous ones. Even SBI holdings were in firm support of Ripples during the legal proceedings with Tetragon.
After that time, the Tokyo-based financial services company group has continued to partner with digital asset firms globally to increase its portfolio of investments and partnerships. One of such partnerships resulted in the company buying TaoTao last year – TaoTao, before its purchase, was a leading crypto exchange firm in the country.