Tetragon Financial Group asked for a restraining order against Ripple

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XRP faces another lawsuit after the recent SEC complaint against the company. 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. Cryptocurrency XRP reacted negatively and fell nearly 5% following the news. Litecoin has taken over XRP to become the fourth most valuable cryptocurrency.
Tetragon requested Court to block XRP from using cash and other assets until the payment is made. In addition to the redeem request, the financial services group requested an expedited trial, including a preliminary injunction and a restraining order against Ripple.
Ripple announced that it dismisses the basis of the lawsuit and mentioned that it has no merit. “In Ripple’s Series C investment agreement, there is 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. 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,” Ripple said in an official reply.
Ripple received a lawsuit filed by the SEC last month in which the commission termed XRP as a security and mentioned that the company and its two executives were conducting a $1.3 billion unregistered securities offering. XRP fell more than 60% following the news and the overall cryptocurrency market faced a $50 billion sell-off. Many cryptocurrency exchanges halted XRP trading and some of them completely delisted the cryptocurrency. XRP is currently trading near $0.22 as the total market capitalization fell from $29 billion to $10 billion within two weeks.
Litecoin became the fourth-largest cryptocurrency in the world after it reached a market capitalization of $10.7 billion, around $500 million more than XRP’s market cap.

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