Ripple Labs has reflected in court an attempt by the British investment firm Tetragon Financial Group to buy out its stake in a fintech company, reports Bloomberg.
In 2019, Tetragon led Ripple’s $ 200M Series C funding round when the company estimated at $ 10 billion.
In January 2021, a British firm through the court demanded that Ripple redeem preferred shares under the current contract. The plaintiff asked the Delaware court to block the Californian company from using cash and other liquid assets pending payment.
Tetragon took action following the filing of a lawsuit against Ripple by the US Securities and Exchange Commission (SEC). Regulator accused the company of selling unregistered securities worth $ 1.3 billion in XRP tokens.
On Friday, March 5, the court rejected Tetragon’s request. The judge agreed that until the SEC case is resolved, XRP’s status remains an open question.
“The SEC has yet to try to prove its case in court, but we do not believe they will be able to do this. As our lawyers have publicly stated, the SEC is absolutely wrong, ”Ripple said in a statement.
We will remind, in February, the SEC filed an amended version of the claim, focusing on the actions of the company’s CEO Brad Garlinghouse and its co-founder Chris Larsen.
They responded by calling the Commission’s amended lawsuit “Regulatory arbitrariness”.
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