The Court recognized that the SEC may make a final determination through an administrative proceeding or rulemaking, among other things. Finally, the Court explained that its ruling did not undermine the terms of the parties’ agreement, which allowed for the SEC to make a final determination. Again, for there to be an ultimate “determination,” that process would have to result in an enforcement action, in which the District Court would have to rule for the SEC.
Tetragon filing series#
A Wells Notice is just the request of an SEC staff attorney to allow potential defendants to argue their position. Tetragon filed its complaint on Monday in Delaware Chancery Court, seeking to enforce its contractual right to require Ripple to redeem Series C preferred. Additionally, the SEC’s issuance of a Wells Notice prior to filing the enforcement proceeding was even further removed from being a final determination. The SEC’s decision to file a complaint in the District Court merely reflected the SEC’s view that XRP is a security but a final determination could only come from the District Court. Reviewing dictionary definitions, it held that the SEC’s actions were not “determinations” because they lacked finality.
Tetragon which is a U.K.-based investment firm holding aggregated assets of 2.32 billion filed the sealed petition with Delaware Chancery Court. Tetragon had a right under a Stockholders’ Agreement to require Ripple to redeem its shares if the SEC or another government agency “determine on an official basis” that XRP is a security “on a current and going forward basis.” Here, Tetragon sought a declaration that the SEC’s decisions to file an enforcement action in federal District Court, and issue a Wells Notice, each triggered the redemption right.įollowing expedited proceedings, the Court of Chancery disagreed. Last Monday night, Tetragon filed a lawsuit against Ripple sighting the potential damage Ripple could cause if found that Ripple’s XRP is security and not a coin. Plaintiff Tetragon Financial Group Limited is a shareholder of Ripple Labs, Inc., a blockchain company that uses a cryptocurrency called XRP.
0 kommentar(er)
