Cryptocurrencies
Ripple Investor Sues to Force Stock Redemption on SEC Claim
- Tetragon cites SEC’s finding that the XRP token is a security
- U.K.-based investment company wants to freeze Ripple’s assets
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Ripple Labs Inc., whose XRP token is the world’s third-largest cryptocurrency, was sued by a U.K. investment company after the U.S. Securities and Exchange Commission claimed the virtual tokens were sold improperly.
Tetragon Financial Group Ltd., with total assets of $2.32 billion, filed the complaint under seal Monday night in Delaware Chancery Court. In concurrent filings that are public, the investment company said it seeks to “enforce its contractual right to require Ripple to redeem” Series C preferred stock held by Tetragon and to block Ripple from using any cash or other liquid assets until the payment is made.