The claims of the UK-based company were based on the allegations by the US Securities Exchange Commission (SEC) over the unregistered security status of XRP.
However, according to Bloomberg, Tetragon lost its bid as a Delaware Chancery Court ruled against the company’s claims.
“But, XRP is no more a security after the SEC filed the enforcement action than it was before it,” the Delaware Judge said in the ruling on Friday. “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,” the Judge added.
Ripple harshly criticized the intentions of Tetragon, calling the lawsuit “an opportunistic move to take advantage of the SEC’s allegations.”
“What has always been clear (and made so, even more, today) is that the SEC still has to try to prove their case in Court; which we do not believe they will be able to do,” Ripple added. “As our lawyers have said publicly, the SEC is ‘dead wrong’!”
The big crypto case
As a reminder, on December 22, the US SEC accused Ripple of selling unregistered securities in the form of XRP in the amount of $1.3 billion. Preliminary hearings was held on February 22, 2021.
In January, a Florida resident has filed a class-action lawsuit against Ripple Labs and the company’s CEO, Brad Garlinghouse, in which he accused them of violating state securities laws and illegal enrichment.
Most recently, Garlinghouse filed a letter of intent to dismiss the updated charges from the SEC who failed to properly explain the nature of the accusations.
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