The lawsuit between Ripple and Tetragon was closed in Ripple’s favor. In a statement, Ripple called Tetragon’s complaint an “opportunistic move” to misuse the claims of the US Securities and Exchange Commission (SEC).
to the the report A cryptocurrency court in Delaware has rejected Tetragon’s request to withdraw its capital from Ripple Labs, a Blockchain-based payment company.
The Delaware State Court rejected Tetragon’s request to reclaim its stake in Ripple. The company cited Ripple’s dispute with the US Securities and Exchange Commission as the reason for the request.
It is worth mentioning that the mentioned court closed the case because the Stock Exchange and Securities Commission has not yet officially determined the legal status of XRP digital currency.
In January 2021, Tetragon sought an interim injunction in the Delaware State Court to reclaim its stake in Ripple.
Ripple received $ 200 million from Tetragon in 2019 as a major investor. This financing was done in the C-Series capital raising phase. The investment agreement stipulates that if the XRP digital currency is recognized as a security by an official entity, Tetragon has the right to reclaim its shares in cash from Ripple.
Tetragon had claimed that the action of the Stock Exchange and Securities Commission against Ripple to sell the XRP digital currency constituted a violation of the rules and regulations of official securities. Therefore, Ripple must repay the invested amount of this company.
In this case, the court sided with Ripple, declaring that it was not yet clear whether Ripple was an official security.
The Delaware State Court judge ruled in this regard:
The legal nature of the XRP digital currency has not changed since the stock exchange commission took action. Rather, this executive action actually raises the issue of whether or not XRP is a security. A question that remains unresolved and uncertain. The district court will hear the matter when it is determined.
Following the court ruling, Ripple issued a statement saying that Tetragon’s complaint was an “opportunistic move” to “misuse” the claims of the Securities and Exchange Commission.
The statement added that the final verdict should put an end to the confusion and state that the commission did not specify the XRP securities.