Finance News

Story: Are Big Names Leaving Ripple (XRP) After the SEC Lawsuit

By Steven Anderson

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Ripple (XRP) Tetragon Issue

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That SEC lawsuit sure is scaring people away from Ripple.  The lawsuit that has been filed by the Securities and Exchange Commission (SEC) versus digital payments firm…

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Ripple Labs, CEO Bradley Garlinghouse and Executive Chairman and Co-founder Christian Larsen are named in the suit.

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Ripple have previously stated that "countless innocent XRP retail holders with no connection to Ripple" and have “needlessly muddied the waters” for the industry.

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The allegation from the SEC versus Ripple is that two of its executives — Garlinghouse and Larsen — raised more than $1.

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The SEC have also stated that XRP cannot be considered as a currency as it’s not backed by a central government and therefore not legal tender.

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Brad Garlinghouse previously stated that he was warned in that he was limited about what he could say about the allegation as the case is ongoing.

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Previously, when Brad was questioned if Ripple paid exchanges to list XRP, he stated that “Ripple has no control over where XRP is listed.” 

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Tetragon Financial Corporation, a UK investment company with total assets of $2.32 billion filed a complaint on Ripple in Delaware Chancery Court.

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Tetragon have filed this complained to “enforce its contractual right to require Ripple to redeem” their Series C preferred stock which is held with Ripple by Tetragon and to…

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They have required the court to facilitate a temporary restraining order, a preliminary injunction and an expedited trial.

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Ripple have refused the merits of the Tetragon lawsuit by further clarifying that there is no determination that XRP is an unregistered security like the claims of the SEC.

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Of note, the investment agreement states, Tetragon can redeem its Ripple equity “if XRP is deemed to be a security on a go-forward basis.”

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Will the courts provide clarity on whether XRP is a currency or security? And, if they several other investors will also follow suit Tetragon.

The Currency Analytics

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