Ripple’s investor Tetragon is suing the company in order to redeem its stock, says Blockchain News. According to the source, the investor that led the company’s Series C funding round established an agreement with Ripple. The agreement says Tetragon could demand a refund and redemption of stock in the event XRP was determined to be a security.
However, Ripple did not agree with the claim because of an ongoing lawsuit against the SEC, in which XRP has not yet been ruled as a security. Tetragon pled with the Delaware Chancery Court, and as a result, Ripple will have to limit the sales of XRP until Tetragon’s shares can be liquidated, the source says.
The lawsuit from Tetragon takes place while Ripple is still dealing with the lawsuit from the US Securities and Exchange Commission (SEC). The SEC sued Ripple back in December 2020 for illegal securities offering worth $1.3 billion. Moreover, the SEC recently amended its complaint to accuse the company of XRP token’s price manipulation.
On February 21, Ripple’s side responded to the amended claims, suggesting that there were not many changes from a legal standpoint, according to CryptoBriefing.com. Moreover, as the source suggests, citing Mary Jo White, who is a former SEC Chair and attorney for Ripple, the case could fail because the SEC waited many years to bring it up.