Ripple Labs has won the lawsuit against Tetragon Financial Group Ltd. on March 5. The court in the U.S. State of Delaware rejected Tetragon Financial Group Ltd’s request for requiring Ripple to go for stock redemption. The reasoning states that Tetragon failed to show the Wells notice or enforcement action is a securities default. Therefore, the asset manager has not demonstrated the requisite for success on the merits of its claim. 

Ripple Announcement of the Judgment Against Tetragon

Ripple made an announcement soon after the ruling:

“This ruling, coupled with a separate filing the SEC made today, should put to rest any confusion. The SEC has NOT determined that XRP is a security.”

Ripple claimed:

“We look forward to bringing the SEC’s case to a just and speedy resolution and remove the cloud that the SEC’s misguided actions have cast over the XRP market.” 

Status of XRP Is Not Yet Determined: SEC 

According to the ruling of the judge in the aforementioned case:

“… XRP is no more security after the SEC filed the enforcement action than it was before it. A determination …resolves the question of whether XRP is a security. The enforcement action, by contrast, asks that question. The question is not yet resolved, so a determination has not yet been made. And when it is made, it will be made by the District Court.”

Security and Exchange Commission stated:

“The Court hearing the SEC’s case against Ripple is “the exclusive method for testing the validity” of the SEC’s claims against Ripple.”

Stuart Alderoty, General Counsel at Ripple Labs, commented on the success against Tetragon in combination with John E. Deaton’s filing:

“The Tetragon ruling, coupled with the SEC’s filing in @JohnEDeaton1’s case, should put to rest the FUD that the SEC unilaterally determined that XRP is a “security.” Glad that’s settled!”

Brad Garlinghouse, CEO of Ripple Labs, also voiced his opinion on both cases via Twitter, denouncing the SEC: 

“This is why regulation by enforcement wreaks such havoc. By bringing a massive enforcement case, the SEC acknowledges they didn’t “determine” anything, but the crypto markets – under pressure – interpreted the filing as such, causing massive damage to retail holders and now the SEC affirms that no determination has been made about XRP and it didn’t order or ask anyone to halt trading / delist, so retail holders shouldn’t blame the SEC but instead – wait for it – blame the exchanges! So who are they protecting?!”