After the court has passed a decree on March 05 that Tetragon is not eligible for stock redemption from Ripple, with rejection of appeal from Court of Chancery of the State of Delaware. In a thread, the company claimed that RippleNet has registered almost double transactions in 2021.ĬEO of Ripple, Brad Garlinghouse claimed that the year 2021 was the best year for the Ripple network and claimed Ripple is in an “extremely strong position in the market,” and stated that “Ripple is cash flow positive, has $1B in the bank and a strong balance sheet. Ripple Wins Case Filed by Tetragon Financial Ripple Labs has received another success in its legal case with Tetragon Financial Group Limited. “The buyback places Ripple’s new valuation at $15B and reflects Ripple’s strong position in the market and global company momentum – Ripple’s global business has grown exponentially and 2021 was the company’s best year to date,” the company said.
The authorities claim that Ripple and top executives sold the crypto XRP to the public as unlicensed security. Ripple sees this buyback as a great achievement to stay in line with regulations amid an SEC lawsuit filed in 2020 that stained the company’s reputation in the crypto community. This purchase takes Ripple’s valuation to $15 billion. The CEO of Ripple, Brad Garlinghouse Network declared that the company bought back a shares worth $200 million from investors of the Series C funding round in December 2019. According to Fortune, the company is now valued. Tetragon is leading the round, with SBI Holdings and Route 66 Ventures also participating. The company claims to have a strong balance sheet and double business growth. Ripple has raised a 200 million Series C funding round.The company’s valuation reached $15 billion.Ripple bought back its shares from investors of Series C funding round.Whether XRP will be ruled as a security by the US court will be a crucial turning point for the cryptocurrency industry as a whole, as it may pave the way for how other digital currencies are classified in the country. The Commission accuses Ripple and its executives of selling unregistered securities with XRP. It has been two months since the SEC has slapped Ripple Labs with a lawsuit for XRP. Attorney Jeremy Hogan had previously commented on the letter, remarking that Ripple's arguments in the letter were well presented and stronger than that of the SEC. With the first court date set for February 22, the SEC and Ripple have informed the court through a joint letter that a settlement was not going to happen, at least for the time being.
The tension has been increasing for Ripple, as its pretrial looms and many legal experts have speculated on the outcome of the SEC case. Currently, Ripple is to limit its XRP sales by maintaining a net zero position in sales and purchases of XRP, until Tetragon is able to liquidate its Ripple shares. Tetragon’s plea with the Delaware Chancery Court to freeze Ripple’s liquidity completely until a reimbursement has been made has resulted in a temporary restraining order against the fintech firm. Tetragon attorney Michael Shuster accused Ripple of misrepresenting the previous agreement between both parties. In an official report, Tetragon’s legal team accused Ripple of playing “word games” to circumvent a potential order from the Delaware Chancery Court to halt its cryptocurrency transactions until it reclaims Tetragon’s $175 million stock originating from Ripple. The latter has currently claimed that Tetragon’s current lawsuit had no merits since the court has not officially ruled XRP as a security. Under the clause, an agreement was made between both firms that if XRP was deemed a security, Tetragon would be allowed to demand a stock redemption and a refund from Ripple. In a lawsuit filed with the Delaware Chancery Court, Tetragon has asserted that it was rightfully entitled to demand that Ripple redeems its equity under the agreement pre-established in the Series C clause. The multi-billion asset manager, which initially led Ripple’s $200 million Series C funding round in 2019, has now joined the SEC in pursuing the fintech firm in court. Along with the heat Ripple is currently facing from the Securities and Exchange Commission, one of its lead investors has also turned against it.Ĭurrently, Tetragon is suing Ripple to force it to redeem its stock.
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