One of Ripple Labs’ biggest investors lost in reclaiming his $ 175 million investment.
A court in Delaware rejected a request from multibillion-dollar asset manager Tetragon Financial Group in exchange for his Ripple stake for cash amid the ongoing legal battle between the SEC and Ripple.
The UK-based Tetragon filed a lawsuit in January to reclaim $ 200 million Series C round funding of the blockchain company it led in 2019. The lawsuit also aims freezing Ripple’s liquid assets until the company is paid off. Now, it looks like Ripple won’t have to, a Delaware Chancery Court judge on Friday (March 5) dismissed the plaintiff’s case.
Ripple has been calling the lawsuit in vain in the first place. At the time, Tetragon had only one suit if the SEC identified XRP as a security. The terms of the initial investment give Tetragon the right to exchange his Ripple equity if XRP is treated as a security.
“XRP is no longer a security after the SEC submitted enforcement action compared to before,” the court said, as cited in a Ripple press release. “On the contrary, the act of execution raises that question. The question has yet to be resolved, so a decision has yet to be made. ”
“What do we call Tetragon’s lawsuit – an opportunistic move to capitalize on the SEC’s allegations. It has always been clear (and made clearer today) that the SEC still has to try to prove their case to the Court. What we don’t believe they will do, ”Ripple said in a statement.