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Another Lawsuit for Ripple?

Another bad day for Ripple!

UK-based investment firm Tetragon Financial Group is suing Ripple. The latest lawsuit has been prompted by the SEC’s legal action against the company, the regulator has alleged that XRP is an unregistered security and Ripple’s sales of it were illegal. The commission now sues for $1.3B.

Bloomberg states that Tetragon has filed the complaint under seal on Monday in Delaware’s Court of Chancery; the filing asked for the firm’s preferred Series C Ripple stock to be redeemed.

Tetragon also asked the court for an expedited trial, a preliminary injunction, and a temporary restraining order against Ripple.

Tetragon led Ripple’s Series C funding back in 2019, which raised around $200M. In a statement issued early today, Ripple said that the terms of that deal have included 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.”

The statement continues: “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.”

The lawsuit against Ripple provoked existential questions for the company and its token if XRP is a security, and the company has been selling it illegally, it means the end for one of the biggest players in the crypto market.

Ever since SEC’s announcement of legal action versus Ripple in December, most major exchanges have stopped all XRP trading, it has cost the token a major chunk of its value. Earlier today, it dropped from the fourth-largest cryptocurrency by market cap to the fifth. It was in the third spot last December.

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