◆ Tetragon, redeem preferred stock
According to Bloomberg, the British-based Tetragon filed a complaint with the Chenikary Court in Delaware, USA. This is the aftermath of the SEC indicting Reflaps for selling undesired securities. Tetragon supported Ripple’s 200 million investment in December 2019.
Terragon demanded that Reflaps repay Series C preferred shares under a contract. It also asked the court to stop Ripple from using cash or other liquid assets until all investments were paid off.
◆ Repayment only when regarded as ripple or securities
Ripple Labs released a statement on its website. Ripple said, “Under the Series C investment contract, there is an option to redeem Ripple shares if Ripple is considered a securities in the future,” said Ripple. “We were disappointed with the Tetragon’s clever attempts to exploit regulatory blind spots in the United States.” “The court will make a clear decision on this,” Ripple Labs added. “We are confident.”
Meanwhile, DeCrypt reported that it had decided to pay $125 million to shareholders to avoid being charged with money laundering charges of Moneygram, which it partnered with Ripple. The Delaware State Court dismissed the lawsuit filed by shareholders.
Ripple bought a 9.95% stake in Moneygram last November for $50 million. Moneygram announced in December last year that its partnership with Ripple will not be affected by any lawsuits with the SEC.
◆ Ripple neglected by investors
The Block, a media specialized in cryptocurrency, reported that “the number of whales with more than 1 million ripples has decreased by more than 8% over the past two weeks.” The Block cited CoinMatrix data and said that the number of Ripple whale addresses decreased from 1705 on December 22nd last year to 1562 on the 5th.
Many exchanges such as Cobase, Binance, OKCoin, and Bitrex have either stopped trading or delisted Ripple. To make matters worse, on the same day, Grayscale announced that it would sell all its Ripple, and blockchain.com, a cryptocurrency exchange, announced that it will stop trading Ripple from the 14th.
Ripple was pushed to 5th place in the market cap after being pushed by Litecoin. Ripple hits $0.22 and has been trading at a price that has dropped more than 70% since the end of November last year.