Ripple: The Court in Delaware rejected Tetragon’s claim that the SEC had officially determined XRP’s status
Not so long ago, Ripple Labs itself sued by their major investor after the US Securities and Exchange Commission announced that the company had sold unregistered XRP securities for 7 years. And today, Ripple has officially announced this lawsuit, disproving Tetragon’s accusations.
Ripple is denying Tetragon’s request for a preliminary injunction
UK-based Tetragon Financial Group, with total assets of $ 2.32 billion, has filed a lawsuit against Ripple with the Delaware Chancery Court. In public filings, the investment firm says it seeks to exercise a contractual right to require Ripple to buy back the Series C round preference shares held by Tetragon and to block Ripple from using any cash. or any other liquid asset until the payment is made.
Under the terms, an agreement was made between both companies that if XRP was deemed secure, Tetragon would be allowed to request a share buyback and a refund from Ripple. The latter has now stated that Tetragon’s current lawsuit is of no value as the court has not officially ruled that XRP is confidential.
“Today, the Court in Delaware rejected Tetragon’s claim that the SEC had officially determined XRP’s status. This ruling, coupled with a separate filing the SEC made today, should put to rest any confusion; the SEC has NOT determined that XRP is a security.”
As the Delaware Judge stated:
‘But XRP is no more security after the SEC filed the enforcement action than it was before it. A determination …resolves the question of whether XRP is a security. The enforcement action, by contrast, asks that question. The question is not yet resolved, so a determination has not yet been made. And when it is made, it will be made by the District Court.”
Therefore, Tetragon’s claim — that a securities default occurred — has been proven wrong.
The Tetragon lawsuit, arguably, is an opportunistic move to capitalize on the SEC’s allegations. It has always been clear that the SEC still has to try to prove its claim to the Court – an action Ripple deems impossible. Ripple’s lawyers also stated
The SEC was wrong.
Currently, the Ripple side says it wishes to bring the SEC case to a fair and fast solution, while at the same time removing the cloud that SEC misbehavior caused in the XRP market.
You can see the XRP price here.
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