A major investor in Ripple Labs is trying to withdraw funds bet on this company. Ripple Labs is the issuer of the cryptocurrency XRP (Ripple).
Tetragon Financial Group LTD, a British investment company that manages billions of dollars in assets, led a US$200 million financing of Ripple Labs in December 2019. On Monday evening, the company filed a lawsuit against Ripple in the Delaware Superior Court of the United States, seeking to “enforce contractual rights and require Ripple to redeem” its Series C preferred shares. In addition, Tetragon also asked the court to freeze Ripple’s liquid assets until it paid to redeem the shares.
Just a few weeks ago, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, accusing Ripple that it is actually an unregistered security. At that time, the news was a sensation and caused a shock to the Ripple market. Now, the panic has clearly spread to Ripple investors.
As of now, Tetragon’s litigation documents have not been disclosed.