One of Ripple Labs’ largest backers which can be monetary its bid to reclaim its $175 million investment in the blockchain business.
A Delaware court denied the asset that is multi-billion Tetragon Financial Group’s request to redeem its Ripple equity for cash in the midst of a ongoing legal battle between Ripple while the U.S. Security and Exchange Commission.
U.K.-based Tetragon filed suit directly into reclaim its percentage of the $200 million Series C financing for the blockchain company it led in 2019 january. The suit also aimed to freeze ripple’s assets that are liquid it paid up. Now it appears Ripple won’t have to, with a Delaware Chancery Court judge on Friday rejecting the scenario that is plaintiff’s.
Ripple called the lawsuit meritless during the outset, saying at the right time Tetragon only had an instance in the event that SEC determined XRP (+1.07%) to be a safety. The regards to the investment that is initial Tetragon the right to redeem its Ripple equity, if XRP was found to be a security.
“XRP is no more a security following the SEC filed the enforcement action than it absolutely was before it,” the court said, as quoted in a Ripple news release. “The enforcement action, by comparison, asks that question. Issue is not yet solved, so a determination has not yet been made.”
The filings are not immediately available at press time.
“Let’s call Tetragon’s lawsuit exactly what it really is — an move that is opportunistic use the SEC’s allegations. Just what has long been clear (making so even more today) is that the SEC nevertheless needs to make an effort to show their situation in Court; which we do not believe they will be in a position to do,” Ripple said in a declaration.