Ripple and its executives take a breath as US courts rule in their favor
- Tetragon Financial Group is set to pay Ripple £2.475 million in legal fees after losing its case.
- Judge Sarah Netburn denied SEC’s motion to disclose the financial details of Ripple’s executives.
- Brad Garlinghouse and Chris Larsen have filed twin motions for the dismissal of SEC’s charges.
San Francisco-based Ripple Labs, the company behind the Ripple payment protocol, is set to receive £2.475 million in legal fees after winning a lawsuit filed by the Tetragon Financial Group. A Delaware court ruled in favor of Ripple, noting that the question of whether XRP is a security has not been resolved yet. Reportedly, the aforementioned funds will go toward settling the fees that Ripple’s lawyers demanded to defend the company in the lawsuit.
James K. Filan, a defense attorney and a former federal prosecutor, shared images of the court documents, in which the Delaware Chancery Court ruled in favor of Ripple. Per the documents, the court ordered Tetragon Financial Group to pay the sum of £2.475 million to Ripple within five days after the entry of the order and final judgment.
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If the company fails to pay the full amount before the five-day window expires, the court directed that Tetragon must pay Ripple post-judgment interest at a legal rate of 5% per annum over the Federal Reserve discount rate. The unpaid amount will be compounded quarterly, starting from the day of the order until Ripple gets the entire sum.
This news comes after Tetragon filed a lawsuit against Ripple, trying to reclaim part of its £145.78 million investment in the company. Reportedly, the UK-based company led Ripple’s Series C funding round. Tetragon’s case was based on the fact that the US SEC had filed another lawsuit against Ripple and two of its executives, alleging the unregistered sale of XRP tokens.
Ripple executives file motions to dismiss charges against them
With Ripple heaving a sigh of relief after winning the case against Tetragon, the firm’s CEO Brad Garlinghouse, and its co-founder, Chris Larsen, are also enjoying tiny, but important victories against the SEC. On April 11, Judge Sarah Netburn dismissed the SEC’s requests to access the financial records of the two executives. Reportedly, the judge ruled that the disclosure of the personal financial records of the two officials was irrelevant in determining whether XRP is a security or not.
Following this development, the two officials filed two motions to dismiss charges that the SEC filed against them in December last year. At the time, the regulator claimed that Garlinghouse and Larsen aided and abetted Ripple’s illegal sale of XRP.
However, the duo’s defense team argued that most of their transactions were mostly foreign. Additionally, Garlinghouse’s motion noted that while the SEC alleges that some transactions were made in the US, it has no proof to support its claims. Larsen’s lawyer added that the SEC has failed to discover any discrete offers or sales of XRP despite probing Ripple and Larsen for more than two and a half months.