XRP has once again lost its place as the fourth largest cryptocurrency. Lawsuits against Ripple pile up after one of its top investors follows in the SEC’s footsteps and filed a complaint against the project.
According to a Bloomberg report on Jan. 6 Tetragon, a major investor in a $ 200 million Series C round of funding for Ripple in 2019, has filed a lawsuit against the company in the Delaware Chancery Court.
The investment company claims it is seeking a court to “enforce its contractual right to require Ripple to redeem Tetragon’s Series C preferred stock.” In addition, the company asked the court to prevent Ripple from using “cash or other cash” until the matter is resolved.
Ripple responded to the allegations by alleging that the lawsuit was “unfounded” and accused Tetragon of exploiting “the lack of regulatory clarity” in the United States to bring the lawsuit.
Company executives have previously criticized U.S. regulators. Indication that the company would move its headquarters abroad to escape US “regulation through law enforcement”.
Amid lawsuits from both the US Securities and Exchange Commission (SEC) over its English acronym and now Tetragon XRP has lost its position as the fourth largest cryptocurrency by market capitalization. According to data from CoinMarketCap, XRP’s market cap of $ 10.3 billion is behind Litecoin of $ 10.5 billion. LTC has grown 26% in the past seven days while XRP’s market cap has stalled. Litecoin outperformed XRP for the first time on Sunday, but it was a short step.
In December, the SEC sued Brad Garlinghouse, CEO of Ripple, and Chris Larsen, co-founder, for “ongoing offering of unregistered securities for digital assets” for their XRP token sales. The case is scheduled for a preliminary virtual conference in February.
After the news is posted, including crypto exchanges Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy and CrossTower decided to distance themselves from XRP. Some have announced they will suspend XRP trading while others will withdraw the token entirely.
At the time of this writing, XRP is priced at $ 0.22 after falling 70% since late November.
Cointelegraph asked Tetragon for comment, but received no response at the time of this writing.