Tetragon Fails In Ripple Lawsuit And Will Pay $3.4 Million In Legal Fees
As per the ruling of a Delaware court, Ripple, the distributed ledger technology provider, will be given a total of $3.463 million in legal fees. This will be paid by Tetragon Financial Group, a UK-based investment company, after it lost a legal battle against Ripple. Tetragon stands as the leader in the Series C funding round of Ripple that was conducted in 2019. The issue was that this entire matter was soured when the company found itself sued by the US Securities and Exchange Commission, or SEC, in December of that year.
Ripple Vs Tetragon Stopped Over Ripple/SEC Lawsuit
The lawsuit that the asset management firm hit Ripple with was in order to do two things: Redeem the $175 million in equity , as well as forcing the company to temporarily freeze its assets. Ripple doesn’t seem to be phased by these kinds of suits, however, and simply branded Tetragon as an “opportunistic” company.
In an ironic twist of fate, Tetragon’s case against Ripple failed not because of anything definitive. Instead, the Judge ruled against them thanks to Ripple having an uncertain classification in the eyes of the law. The SEC is currently in a lawsuit with Ripple Labs, accusing them of selling XRP as an unregistered security, a sentiment many average traders would agree to. However, Ripple is most definitely going to put up a fight, since no one wants to dock out the amount of funds the SEC is demanding from the company.
Lawsuits At Their Most Technical
The most recent development, in that case, comes from Ripple managing to stop the SEC from gaining access to the personal information of Garlinghouse and Larson, the two co-founders of Ripple. Prior to this, Ripple had a big win when it managed to gain a massive amount of communication documents from the SEC’s internal channels. All of this comes in a bid to discover whether or not the SEC has compared Ripple to Bitcoin or Ethereum. In the eyes of US law, Bitcoin and Ethereum aren’t securities, but commodities instead. Thus, it falls outside of the jurisdiction of the SEC.
Ripple Vs The World
Ripple has had a long and strenuous history of defending itself to the world, stating that it isn’t a security whatsoever. Many users across the internet have speculated otherwise, but the SEC/Ripple lawsuit will seemingly put this to a definitive end, one way or another.
Many fear that the SEC winning the case against ripple would ultimately end with the US going severely on the backfoot when it comes to the crypto space, as many companies will opt to move out of the US instead of facing the wrath of the SEC deciding whether or not an asset of some sort is a security.