Tetragon Sues Ripple to Force Stock Redemption

One of Ripple Labs’ big financial backers is looking to reverse its bet on the XRP issuer.

Tetragon Financial Group LTD, the multi-billion asset manager-turned-plaintiff, had led Ripple’s $200 million funding round in December 2019. On Monday night the U.K.-based firm moved to exit its position in a sealed filing in Delaware Chancery Court, according to Bloomberg.

Just weeks ago the U.S. Securities and Exchange Commission put Ripple’s future in doubt with a blockbuster suit alleging XRP to be an unregistered security. That’s spooked the XRP markets and now, apparently, Ripple investors too.

Tetragon seeks to “enforce its contractual right to require Ripple to redeem” Series C preferred stock, Bloomberg reported. In the meantime, Tetragon wants the court to essentially freeze Ripple’s liquid assets until it pays.

The filings were not immediately available at press time.