It Just Got Worse For Ripple: Tetragon Is Suing The Company To Compensate Series C Funds

Tetragon Financial Group Limited, a closed-ended investment company and a top stakeholder of Ripple, is now suing the company as a response for selling XRP as a security, following the SEC’s legal claim.

Tetragon is a top investor of Ripple with almost $200 million in Series C Funds. Now the company seeks answers, as Ripple sold nearly $2B worth of XRP as a currency.

“This lawsuit has no merit” stated Ripple as a response to Tetragon for yesterday’s lawsuit. According to the company, Tetragon is taking advantage of the situation:

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.

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Ripple must compensate the Series C stocks owned by Tetragon due to its contractual rights with the investment company. Besides, Tetragon filed a petition to the Delaware Chancery Court to issue a restraining order to block all of Ripple’s liquid assets until they compensate the U.K-based company.

Grayscale Sells XRP Fund, Buys Bitcoin Instead

Recently, Grayscale decided to sell its XRP fund and bought several cryptos instead, after updating its Fund Component in its quarterly review:

The Fund has removed XRP and used cash proceeds to purchase the remaining Fund Components: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash

The scenario is getting darker for the Ripple. The company lost its ranks as the third “currency” with most market cap followed by massive price dumps — more than -50% — and several crypto exchanges dropping XRP.