Tetragon Financial Group has filed a lawsuit against Ripple. In 2019, she spearheaded a $ 200 million Series C funding round, when the XRP issuer was valued at $ 10 billion.
Oof. Ripple has been sued by a shareholder after the SEC claimed its XRP tokens were sold improperly. Tetragon was an investor in Ripple’s Series C round, which gave it a $10 billion valuation. Now it wants to sell the stock back to Ripple. https://t.co/mbQQriwVKU
— Ryan Browne (@Ryan_Browne_) January 5, 2021
Tetragon requires Ripple to redeem preferred shares under the current contract. Plaintiff asks the Delaware court to prohibit the defendant from using any liquid assets to maturity and to apply the fast track procedure.
On January 5, Grayscale Investments excluded XRP from the Digital Large Cap Fund trust and sold all tokens in favor of the remaining cryptocurrencies. Earlier, a similar decision was made at Bitwise and 21shares.
3/ $ XRP was removed following DLC Fund’s Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $ BTC $ ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8
— Grayscale (@Grayscale) January 5, 2021
According to Coin Metrics, since the filing of the claim by the US Securities and Exchange Commission (SEC), the number of addresses has decreased from 1 million XRP from 1721 to 1567.
We will remind, the SEC has accused Ripple of selling unregistered securities for $ 1.3 billion for seven years. Preliminary hearings will take place on February 22, 2021.
This is not the first lawsuit against the company – it is the second year that it is suing investors who consider XRP to be an unregistered security. Ripple and Garlinghouse are listed as defendants and in a claim from Bitcoin Manipulation Abatement LLC, which is overseen by attorney Pavel Pogodin.
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