"As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019.” “We are in a strong financial position to execute against our vision," said Garlinghouse in today's announcement.
He added that Ripple will have more announcements and will disclose more numbers in early 2020. Garlinghouse claims that there's a high level of investor interest in Ripple, and that even though the company did not need the money, the funds provide "balance sheet flexibility," says the article. It will hasten the onboarding of new global talent to meet market demands and better serve the community, and it also supports Ripple’s vision for the Internet of Value (IoV), says the announcement.ĬEO Brad Garlinghouse said that he expects Ripple's customer base to grow 30%-40% and transaction volume on the company's network to increase more than 600% in 2020, Fortune reports. This investment, says the company, marks a record year for the business, but also additionally proves both the value of blockchain in improving global payments and the broader utility of the digital asset XRP and the XRP Ledger. The funding round was led by global investment firm Tetragon, with participation from Ripple-friendly SBI Holdings and Route 66 Ventures, the announcement says.
Tetragon vs ripple series#
The issue of classifying XRP as a security has been deemed preposterous by Ripple’s CEO, who pointed out that the US was the only G20 member to classify the token as such.Ripple, a San Francisco-based blockchain startup focusing on the payments technologies, announced that it raised USD 200 million in Series C funding from a group of notable investors. However, Ripple refuted the claims, arguing that the lawsuit had no merit as the SEC ruling had not conclusively placed XRP as a security. Tetragon first filed a preliminary injunction at the beginning of the month, referring to the Series C clause that obliged Ripple to redeem its equity if XRP was classified as a security.
Previously, Ripple CEO Brad Garlinghouse had said that it was unfortunate that Tetragon, a shareholder of Ripple who owns 1.5% of it, was “seeking to unfairly advantage itself through the SEC’s allegations.” XRP under SEC scrutiny for being a securityĪs the Securities and Exchange Commission’s lawsuit against Ripple for selling XRP as an unregistered security has not yet been concluded, the logic behind the Delaware Chancery Court ruling seems to be that the SEC’s ruling needs to have happened first. Ripple's ability to conduct XRP transactions or redeem shares is therefore limited until Tetragon has managed to sell back all of its shares.
However, after the court hearing, the vice Chancellor concluded that Tetragon’s request to completely freeze XRP purchases was too “heavy-handed.” Instead, the court issued an order requiring Ripple to maintain a net zero position in XRP sales and purchases, instead of “halting acquisitions outright.” Ripple must maintain a zero balance in terms of XRP transactions, whether it involves trades or XRP buy-backs. The Series C investment agreement was brought up in the complaint, an agreement stating that if XRP was considered a security, Ripple was required by law to redeem their equity held by Tetragon, if the latter requested it. Through its official complaint, Tetragon insists that Ripple should reclaim its equity and that the XRP-associated company should have their assets and liquidity frozen until a payment is made.
The Delaware Chancery Court’s temporary restraining order to limit XRP sales comes as Ripple’s former investor, Tetragon has decided to sue the fintech firm, filing for a temporary restraining order, a preliminary injunction, and an expedited trial. The firm has been ordered to maintain a “net zero” position in sales and purchases of XRP, until its former investor Tetragon is able to liquidate its Ripple shares. After a court ruling, a temporary restraining order has been issued against Ripple limiting its XRP sales.
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