Ripple scored a victory yesterday in its legal fight against Tetragon Financial Group. As we previously reported , the asset management firm was the largest contributor in the Series C funding round of $ 175 million in December 2019, and after a lawsuit against Ripple by the SEC, it asked Ripple to buy back its shares based on a provision in the deal. In the deal in question, there was a condition that if XRP was deemed a forward-looking security, the shares were bought back by Ripple. However, there is not yet a final decision that XRP is a security.
The decision came yesterday, when Tetragon applied to the court for this in December. Delaware court judge Morgan T. Zurn dismissed Tetragon's request for injunctive relief, as there was no official ruling on the XRP's situation, and lifted the earlier injunction.
“This decision, combined with a separate SEC application today, should eliminate any confusion: The SEC DID NOT DETERMINE that XRP is a 'security', Ripple said in an official statement on the issue. […] Separately, the SEC acknowledged that it had not reached any conclusion on the status of XRP in another lawsuit filed by XRP holders today. In their words: The hearing on the SEC's case against Ripple is the only method to test the validity of the SEC's claims against Ripple. We do not believe the SEC will be able to prove its claims in court. As our lawyers say, the SEC is completely wrong. We look forward to resolving the SEC's case fairly and quickly, and removing the cloud of dust created by the organization's erroneous actions in the XRP market. ” used the expressions.