Ripple’s Series C Investor Tetragon Sues The Company Following SEC Lawsuit
After the United States Securities and Exchange Commission (SEC) sued Ripple back in the month of December in 2020, the San Francisco-based blockchain payments company has now been sued by a major investment company. Ripple’s one of the top investors has filed a lawsuit against the firm this time.
Tetragon Seeks Redemption Of Stocks
In light of the SEC charges against Ripple, Tetragon Financial Group has filed a complaint against the company to force it for the redemption of stocks that it is holding. Tetragon Financial Group is one of the lead investment firms that have participated in the company’s funding rounds in the past. Tetragon led the Series C funding round of Ripple back in the month of December 2019 and helped the company to raise an amount of $200 million through it.
As reported by Bloomberg, the lawsuit by Tetragon was filed in Delaware Chancery Court on Monday, the 4th of January. Through this lawsuit, Tetragon seeks to force the remittance firm for the redemption of its stocks in the company that it purchased with its massive investment. As per the report, the investment firm says that it is enforcing Ripple as a part of its contractual rights.
On the other hand, Tetragon has demanded the court for the freeze of liquid assets of Ripple till the time it pays back, revealed the Bloomberg report, which was published on the 5th of January.
This lawsuit from Tetragon follows the recent lawsuit filing of the United States independent agency SEC who sued the blockchain payments giant firm on the 22nd of December and accused the company of alleged sale of XRP as an unregistered security. The SEC claimed that Ripple has made an amount of $1.3 billion in profits through this sale.
Ripple’s Statement On Tetragon Filing
One day after this lawsuit filing by its top shareholder Tetragon, Ripple has shared its response regarding this in an official statement issued on the 5th of January. Ripple said in the statement that this lawsuit by Tetragon does not have any merit as the company’s native digital currency has not yet been deemed as a security.
Furthermore, the company said that it is really disappointing that Tetragon wants to take advantage of the current situation and the lack of regulatory clarity in the United States.
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