Ripple’s Largest Financial Backer Lost Bid To Reclaim $175M Investment

Ripple’s largest financial backer Tetragon lost the bid to reclaim its portion of $200 million Series C investment in the company as it was rejected by the court so let’s read some more in our Ripple news today.

Ripple’s largest financial backer got its request to reclaim $175 million investment rejected by the court, denying him to redeem Ripple equity for cash in the midst of the legal battle between Ripple and the US Security and Exchange Commission. The UK-based Tetragon filed the suit to reclaim a portion of its investment-led in 2019, aiming to freeze Ripple’s liquid assets until it is paid up. It seems that Ripple won’t have to do it with the Delaware Chancery Court judge rejecting the case. Ripple said in a statement:

 “Let’s call Tetragon’s lawsuit what it is — an opportunistic move to take advantage of the SEC’s allegations. What has always been clear (and made so, even more, today) is that the SEC still has to try to prove their case in Court; which we do not believe they will be able to do.”

Ripple’s CEO claims while speaking to Reuters that the company is growing in the Asia Pacific region despite the SEC Legal battle against his company and the executives. The past four months were some of the toughest for Ripple as the company was slammed with a $1.3 billion lawsuit by the US SEC as the regulator claimed Ripple and its executives conducted an unregistered Securities offering using XRP.

Also as reported, Moneygram suspended trading on Ripple as it changed the relationship with the blockchain payments company amid the litigation with the Securities and Exchange Commission. According to the quarterly outlook, the company is not planning to make any benefit from the Ripple market development fees for the first quarter of this year. Money transferring giant said that it had more than $12 million net expense benefit from Ripple in the same quarter of 2020. The collaboration between the two companies started three years ago when Moneygram integrated XRP into its payment system. The year after, Ripple and MoneyGram entered into a partnership for cross-border payments and foreign exchange settlements with digital assets.

However, amid the news in December, last year that the US securities and exchange Commission will take legal action against Ripple, both Brad Garlinghouse and Chris Larsen have mentioned n the lawsuit as well, the payments giant seems to have tried to distance itself from the company.