A Delaware Chancery Court judge temporarily halted Ripple (XRP) transactions by Ripple Inc. as requested by Tetragon, a former investor and plaintiff against Ripple.
- On Jan. 15, Vice-Chancellor Morgan Zurn of Delaware's Chancery Court agreed with a complaint filed by a former Ripple investor, Tetragon Financial Group Ltd, issuing a temporary restraining order against Ripple Inc.
- The order requires the blockchain company, which holds 6% of the world's circulating XRP, to maintain a "net-zero" position between sales and purchases of XRP to protect Tetragon's claims.
- Tetragon was a lead investor in Ripple's $200M Series C funding round alongside Japan's SBI Holdings (8473.T), Route 66 Ventures, and others.
- The privately-funded blockchain company reportedly refused many opportunities to act on Tetragon's redemption right, according to the private banking company's lawsuit and complaint filed on Jan. 7.
- Similar to the SEC's complaint, Tetragon alleges that the XRP token sale occurred in an "information vacuum" whereby investors received selective and misleading details from Ripple's executives, Brad Garlinghouse and Chris Larsen.
- The SEC says that Garlinghouse and Larsen enriched themselves with $600M personally by selling unregistered securities.