![]() Therefore, Tetragon’s claim - that a securities default occurred - has been proven wrong. And when it is made, it will be made by the District Court.” The question is not yet resolved, so a determination has not yet been made. The original allegations centered around a shareholder’s agreement between Tetragon and Ripple Labs, first entered in. A lawsuit that Ripple Labs representatives called opportunistic. The enforcement action, by contrast, asks that question. The case goes back to January, where Tetragon, an investment management group based in the UK, sued Ripple to force it to buy back 175 million in shares. A determination …resolves the question of whether XRP is a security. ‘But XRP is no more security after the SEC filed the enforcement action than it was before it. This ruling, coupled with a separate filing the SEC made today, should put to rest any confusion the SEC has NOT determined that XRP is a security.” Long Reads Publish Content Crypto Feed Crypto News Regulations Finance&Economics Society Press Release. Cryptocurrencies Exchanges Block explorers PoW PoS Events Tools. “Today, the Court in Delaware rejected Tetragon’s claim that the SEC had officially determined XRP’s status. Ripple Labs has emerged victorious from its lawsuit with Tetragon Financial Group. The latter has now stated that Tetragon’s current lawsuit is of no value as the court has not officially ruled that XRP is confidential. Under the terms, an agreement was made between both companies that if XRP was deemed secure, Tetragon would be allowed to request a share buyback and a refund from Ripple. or any other liquid asset until the payment is made. Securities and Exchange Commission (SEC), according to a report by Bloomberg. Tetragon Financial Group, the lead investor of Ripples 200 million Series C, has sued the company after a recent complaint by the U.S. ![]() ![]() In public filings, the investment firm says it seeks to exercise a contractual right to require Ripple to buy back the Series C round preference shares held by Tetragon and to block Ripple from using any cash. Ripple is facing yet another lawsuit, this time from one of its investors. UK-based Tetragon Financial Group, with total assets of $ 2.32 billion, has filed a lawsuit against Ripple with the Delaware Chancery Court. Because Tetragon’s redemption right had not matured, the Court granted summary judgment in Ripple’s favor.Ripple is denying Tetragon’s request for a preliminary injunction Cryptocurrency XRP reacted negatively to the news and dropped nearly 5 following the news. The Court recognized that the SEC may make a final determination through an administrative proceeding or rulemaking, among other things. Tetragon Financial Group filed a complaint against Ripple Labs in Delaware Chancery Court and asked the San Francisco-based company to redeem Tetragon’s Series C preferred stock. Finally, the Court explained that its ruling did not undermine the terms of the parties’ agreement, which allowed for the SEC to make a final determination. Again, for there to be an ultimate “determination,” that process would have to result in an enforcement action, in which the District Court would have to rule for the SEC. A Wells Notice is just the request of an SEC staff attorney to allow potential defendants to argue their position. Additionally, the SEC’s issuance of a Wells Notice prior to filing the enforcement proceeding was even further removed from being a final determination. With the conclusion of the widely-publicized lawsuit of the United States Securities and Exchange Commission ( SEC) against blockchain company Ripple seemingly inching closer, a pro- XRP legal expert has shared his views of the possible outcomes of the case. The SEC’s decision to file a complaint in the District Court merely reflected the SEC’s view that XRP is a security but a final determination could only come from the District Court. SEC: Legal expert shares predictions of 5 outcomes. ![]() Reviewing dictionary definitions, it held that the SEC’s actions were not “determinations” because they lacked finality. On Tuesday, January 6, UK-based investment giant and multi-billion asset fund manager Tetragon Financial Group, has sued the blockchain startup after the SEC. ![]() Tetragon had a right under a Stockholders’ Agreement to require Ripple to redeem its shares if the SEC or another government agency “determine on an official basis” that XRP is a security “on a current and going forward basis.” Here, Tetragon sought a declaration that the SEC’s decisions to file an enforcement action in federal District Court, and issue a Wells Notice, each triggered the redemption right.įollowing expedited proceedings, the Court of Chancery disagreed. Plaintiff Tetragon Financial Group Limited is a shareholder of Ripple Labs, Inc., a blockchain company that uses a cryptocurrency called XRP. ![]()
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