Tetragon Financial Capital Ltd., the leading investor in the California-based company's $ 200 million Series C round, he sued Ripple Labs the past January 4th.
The deed was presented at the Delaware Chancery Court and is intended to oblige the counterparty to redeem the Series C preference shares it holds, as established on a contractual basis. Furthermore, Tetragon requests that Ripple Labs be prevented from using cash or other liquid resources until payment is made. Finally, asking for a temporary restraining order, a preliminary injunction and a trial as swift as possible.
Ripple: one trouble leads to another
The lawsuit filed by Tetragon confirms the bad moment of Ripple Labs, already put to the test by dispute initiated by the Securities and Exchange Commission (SEC) of the United States, for the unauthorized sale of securities for an amount equal to 1,3 billion dollars.
An act of war which is practically scorching earth around the company led by Brad Garlinghouse. As evidenced by the decision of a large number of exchange di suspend trading of XRP on their platforms, imitated by other companies related to the sector crypto, which have stopped all relations with Ripple. A decision that, however, could be late, at least for some of them.
Coinbase is also in trouble because of Ripple
The most sensational case in this sense is for now that of Coinbase, which also banned XRP from its trading. A user of the exchange platform, in fact, has filed a class action against it, claiming that by making XRP available for trading violated California's unfair competition laws. Actually knowing how the token represented an unregistered security. An interpretation supported by the Craig Wright, who declared himself ready to provide evidence of Coinbase's misconduct.
Brad Garlinghouse's latest utterances
In the turmoil that has arisen around Ripple, it has returned to peep again Brad Garlinghouse. The CEO of the Californian company has indeed reiterated his belief that he is on the side of reason and that history will do justice to the allegations made by the SEC. Words which seem once again improvised, in the light of what is happening. Agitating the challenge once again in the face of the US financial market supervisory authority could in fact cause a tightening of the same. IS make an attempt at accommodation practically impossible of a story that is taking a bad turn for Ripple.
The SEC seems to have the right cards in hand
To understand how dangerous Brad Garlinghouse's strategy is, it would be enough to recall what Craig Wright said about it. According to which the SEC had a full seven years to prepare the final thrust against Ripple Labs. It therefore seems very unlikely that he does not have evidence in hand that can prevail in the courtrooms.
A belief which, however, soon made its way into the cryptographic world. Pushing him to make a void around that project which has always been seen with obvious annoyance by many, or by those who have always considered it a simple speculation. Without any profile of innovation that could unite it with others who are amply demonstrating their validity.