3 years ago
128 Asset manager Tetragon Financial Group, one of Ripple’s biggest financial backers has been denied a $175 million claim from Ripple by a Delaware court.
The company filed a suit and requested that Ripple redeem part of its $200 million funding it led in 2019. This is coming amidst the heavy legal battle between Ripple and the Securities and Exchange Commission.
Ripple’s case with the SEC has affected the blockchain company badly, with several crypto exchanges delisting the company’s token XRP from their portal. It has also affected XRP’s price negatively. It went to an all-time low value back in January, but the token has recovered some of those losses.
A brighter side amidst legal troubles
The SEC claims the XRP token is an unregistered token and claims over the security feature of the token is being debated by the SEC and Ripple.
The determination of whether XRP is a security is not yet made, and will only be made by the district court when the question is resolved.
In line with the SEC case, Tetragon filed its case and demanded the Ripple’s assets be frozen until the company returns the investment proceedings.
Ripple fired back at Tetragon when it criticized the company’s intentions by calling it “an opportunistic move to take advantage of the SEC’s allegations.”
However, a Delaware court has rejected the company’s case, and it seems Ripple doesn’t need to pay back the funds.
A heavy case in the crypto industry
The lawsuit filed by the SEC against Ripple and its board of directors has been well documented.
The SEC alleged that Ripple engaged investors and raised $1.3 billion through an initial public offering (IPO) that did not pass legal requirements. The SEC argued that since the token is unregistered security, it violated the United States Securities act.
Chief Executive Officer Brad Garlinghouse and co-founder Chris Larson have filed motions requesting the dismissal of charges against them. According to them, there is no single solid evidence against Ripple in the lawsuit. They also stated that the SEC doesn’t have the regulatory jurisdiction to handle the case.
Ripple said that SEC has not proven its case in court and Tetragon has no basis to take action based on an unconcluded case. According to Ripple, its lawyers strongly believe the SEC cannot prove its case because the regulator is “dead wrong.”
