In a recent statement, Ripple, the cross-border payment firm that oversees the distribution of XRP, has responded to one of its stakeholders Tetragon, claiming that its lawsuit is without merit.
Tetragon Sues Ripple
As reports have it, Tetragon, the multi-billion investment company, sued Ripple in a bid to redeem its stock. This followed the high-profile lawsuit filed by SEC against Ripple, for allegedly selling XRP as an unregistered security for about seven years.
Tetragon aims to enforce its contractual right stipulated in the deal while asking the court to temporarily freeze the defendant’s assets. Recall that the firm was fully involved in Ripple’s Series-C funding round that played out in late 2019.
Responding to the lawsuit, Ripple accuses Tetragon of trying to take advantage of regulatory uncertainty in the United States.
Ripple further added that the lawsuit lacks merit because the court has not determined whether XRP is a security or not.
The statement reads as follows:
In Ripple’s Series C investment agreement, there is a provision that if XRP is deemed to be a security on a go forward basis, then Tetragon has the option of having Ripple redeem their Ripple equity. Since there has been no such determination, this lawsuit has no merit.
We are disappointed that Tetragon is seeking to unfairly take advantage of the lack of regulatory clarity here in the U.S. The courts will provide this clarity and we are very confident in our position.
As widely expected, the legal battle between the firm and SEC could last for over a year.