One of the leading investors in Ripple Tetragon sues the company over a lawsuit from the SEC, as the wave of XRP delisting from crypto exchanges continues.
January 06, 2020 | AtoZ Markets – UK-based investment firm Tetragon Financial Group is suing Ripple over a lawsuit filed by the US Securities and Exchange Commission (SEC). Bloomberg reports about it, referring to the document.
Ripple’s Series C lead investor Tetragon to sue the company
According to the lawsuit, Tetragon intends to “exercise its contractual right to demand a buyback from Ripple” of its Series C preferred shares. The investor also asks the court to block Ripple’s access to the use of any cash or other liquid assets until the payment is made.
In December 2019, Tetragon led a $200 million round of investments in Ripple.
Tetragon is also asking the court for an interim injunction and expedited trial. Ripple has already said that Tetragon’s claim is “unfounded” as it has not yet been legally established that XRP is an unregistered security, as the SEC claims.
“We are disappointed that Tetragon is trying to unfairly exploit the lack of regulatory clarity here in the US. The courts will provide this clarity and we are very confident in our position,” Ripple said.
However, not all Ripple investors decided to abandon the company. For example, some XRP investors have petitioned the Rhode Island District Court for a supreme court order against the SEC. The petition claims that the SEC has caused irreparable damage to the token holders by its actions.
In particular, the plaintiffs argue that by calling XRP a security, the regulator violated the interests of investors and caused them serious financial harm.
XRP delisting continues
Nevertheless, the wave of XRP delisting from crypto exchanges continues. The latest in it was the Grayscale Investment investment fund, which removed XRP from the high-capitalized cryptocurrency fund (DLC fund), as well as the Blockchain.com crypto service.
3/ $XRP was removed following DLC Fund's Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8— Grayscale (@Grayscale) January 5, 2021
Thus, XRP has already been abandoned by more than fifteen trading platforms around the world. Recall that the first pre-trial proceedings between the SEC and Ripple are scheduled for February 22, 2021.
At the time of writing, XRP is trading at $0.22 on Bitstamp exchange.
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