Ripple faced another lawsuit after the SEC’s recent action against the company. Tetragon Financial Group filed a complaint against Ripple Labs at Delaware Chancery Court and asked the San Francisco-based company to use Tetragon’s Series C preferred stock.
XRP reacted negatively to the news and dropped about 5% after the news. Litecoin replaced XRP to become the fourth most valuable cryptocurrency in the world.
Ripple was sued by Tetragon, who led the company’s $ 200 million Series C funding round, according to a report released by Bloomberg. Tetragon asked the Court to prevent Ripple from using cash and other assets until payment is made. In addition to this request, the financial services group has requested an expedited trial and pre-cautionary injunction and a restraining order against Ripple.
Ripple denied the basis of the case and mentioned that the Tetragon was not right. Ripple said in an official response, “There is a provision in Ripple’s C-series investment deal that Tetragon has the option to return Ripple shares if XRP is considered a forward-looking security. Since there is no verdict that XRP is a security, this lawsuit has no basis. We are sorry that Tetragon is trying to unfairly exploit legal uncertainty in the US. Courts will remove this uncertainty and we are very confident of our position. ” used the expressions.
Ripple, XRP and Kirpto Market
Ripple faced a lawsuit filed by the SEC last month, in which the commission called XRP a security, and the company and its two executives had sold $ 1.3 billion of unregistered securities. XRP fell more than 60% following the news, and the overall cryptocurrency market faced a sale of $ 50 billion. Several crypto exchanges have stopped trading XRP and some have completely removed the cryptocurrency. XRP is currently trading near the $ 0.22 level as its total market cap has dropped from $ 29 billion to $ 10 billion within two weeks.
Litecoin became the fourth largest cryptocurrency in the world after LTC reached a market cap of $ 10.7 billion, which is about $ 500 million more than XRP’s market cap.
As a result, XRP and its investors were the most affected in these lawsuits and legal processes involving Ripple. As these legal processes continue and speculation increases, the XRP price is expected to get worse.