As our lawyers have publicly stated, the SEC is absolutely wrong, ”Ripple said in a statement. “The SEC has yet to try to prove its case in court, but we do not believe they will be able to do this. The judge agreed that until the SEC case is resolved, XRP’s status remains an open question. On Friday, March 5, the court rejected Tetragon’s request. Regulator accused the company of selling unregistered securities worth $ 1.3 billion in XRP tokens. Tetragon took action following the filing of a lawsuit against Ripple by the US Securities and Exchange Commission (SEC). The plaintiff asked the Delaware court to block the Californian company from using cash and other liquid assets pending payment. In January 2021, a British firm through the court demanded that Ripple redeem preferred shares under the current contract. In 2019, Tetragon led Ripple’s $ 200M Series C funding round when the company estimated at $ 10 billion. On the other hand, some market observers think that the move is to “limit liability in case of a loss.Ripple Labs has reflected in court an attempt by the British investment firm Tetragon Financial Group to buy out its stake in a fintech company, reports Bloomberg. When this happens, Ripple plans to go public with an IPO hence the shares buyback. He notes that on one hand, some market participants think that the move is bullish and indicates that Ripple will soon prevail in the case with the SEC. Based on this, market sentiment is split on what Ripple buying back the shares could mean for the ongoing SEC case as summed up by Fox Business’ Charles Gasparino. They lost the case to Ripple however as the case with the SEC hasn’t been concluded. Seeing the SEC’s move, Tetragon sued Ripple as well to try and reclaim its funds. Shortly after this, the SEC filed its lawsuit against Ripple, declaring XRP to be a security. In December 2019, Ripple raised $200 million in a Series C funding round with the UK-based investment firm and joined by SBI Holdings and Route 66 Ventures. While Garlinghouse’s proclamation bears a lot of positivity, the minds of market participants have not been completely put at peace due to the circumstances surrounding the dispute with Tetragon. Garlinghouse’s announcement has been met with split sentiments He also notes that RippleX, its open-source payments network, was seeing new capabilities being added to the XRP Ledger including NFTs, CBDCs, interoperability bridges, and sidechains. Garlinghouse noted that RippleNet currently handles a volume rate greater than $10 billion for its clients. Regardless of the battle with the SEC, Ripple was able to enter several partnerships with international banks to provide cross-border payment services, bringing crypto native services to the traditional financial institutions. Even with 2021’s headwinds, it was our best year on record, and Ripple’s financial position ($1B in the bank) is the strongest we’ve ever been,” he quipped. “2022 – ‘slow down’ is not in our vocabulary. Garlinghouse notes that despite tough times the company faced in 2021, Ripple recorded its best year yet financially as it was able to accumulate a $1 billion war chest. He proceeds to outline why Ripple was set to get bigger than it has ever been in 2022. “Excited to announce Ripple bought back our Series C (Dec 2019) shares at a $15B valuation!” Garlinghouse said. Garlinghouse adds that the buyback has raised the valuation of Ripple to $15 billion. In a series of tweets, CEO Brad Garlinghouse announced that the firm completed the buyback of shares it sold to Tetragon Financial Group. Ripple CEO Brad Garlinghouse announces shares buyback with an optimistic outlook However, several interpretations of the implication of the buyback have now emerged in the market. The shares buyback has hiked Ripple’s valuation to over $15 billion. The move closes the long-standing dispute between the two firms that began after the SEC brought a lawsuit against Ripple in 2020, accusing the fintech company of selling unregistered securities in the form of XRP tokens. Ripple, the crypto company behind XRP, recently bought back its shares from Tetragon Financial Group.
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