Recently Ripple has prevented Tetragon, their major investor from bidding in order to redeem an enormous quantity of stock.
Ripple is a cryptocurrency payments company that issues XRP tokens. On 7th March, they avoided a bid made by one of their largest investors for the purpose of redeeming stock that is valued at $175 million.
The investor was Tetragon Fin. Group, which is the British manager of funds. In the month of January 2021, Tetragon demanded that they would like to redeem their favored XRP stock of Series C.
Tetragon Stock Redeem Prevented By Ripple
The request of redeeming their stock by Tetragon was made one month after Ripple was sued by the Securities & Exchange Commission of the United States of America. The lawsuit asked the crypto platform to raise $1.3 billion through an unregistered offering of securities.
On the other hand, the Chancery Court of Delaware, where the request had initially been filed, had ruled on 7th March, Friday against claims of investors.
Tetragon is an important investor, that has led the funding round through Series C in 2019 and has successfully managed to raise a huge amount of money that was $200 million. However, the company has not given any official statement as of yet.
The deal had terms that stated a crucial provision that in case XRP is considered security then Tetragon will have an option of redeeming the Ripple equity. However, the rule of the court stated that the lawsuit is yet to be settled.
Ripple gave a statement where they informed that the lawsuit of Tetragon is an opportunistic step in order to capitalize on the allegations made in the SEC.
Brad Garlinghouse, Ripple CEO, submitted 2 arguments for the dismissal of the SEC complaints to the court.