Ripple was already having a catastrophic start to the year: SEC lawsuits had tumbled the price of XRP, and prompted some platforms to delist it. And it seems that it is not over, since one of the investors in the project has also decided to sue the company …
New lawsuit targets Ripple (XRP)
The altcoin was already in a catastrophic situation : the Securities and Exchange Commission (SEC) lawsuit accused it of having sold securities without declaring them . Since then, investors had seen the price collapse, and some of them had even tried to go directly to the White House to save the cryptocurrency.
Suffice to say that Ripple did not need a second trial. But this is what is happening. British investment firm Tetragon , which participated in Ripple’s Series C financing round, is suing the San Francisco-based company, according to Bloomberg information .
Tetragon wishes to “ assert its contractual right which requires Ripple to buy back [the shares held by Tetragon]“. On top of that, the investor wants to prevent Ripple from using their funds or any other liquid asset, until the payments are made.
How far will Ripple dive?
This second trial is therefore a new thorn in Ripple’s side. The company ruled the lawsuit “ unfounded “ in a statement, explaining that this contractual right is only valid if XRP begins to be viewed as a financial security .
Still, Ripple could have a hard time recovering from this new blow. Following the delisting of many platforms, including Binance US and Coinbase , what will happen to XRP? Already, the asset has unscrewed. The announcement of the lawsuit caused the price of XRP to drop again , which hit 0.22 dollars this morning , while the other top 10 altcoins posted double-digit increases over the week.
The litecoin (LTC) is now installed in the fourth position of the ranking of cryptomonnaies funded with 10.7 billion market cap, against 10.3 billion for the XRP Ripple.