The Delaware Court of Chancery has issued a restraining order against Ripple Labs from conducting any XRP transactions and redemption of shares.
The early detention order from the court in particular prohibited XRP trading activities to the point of reaching zero balance and took effect until Tetragon could liquidate its shares.
Tetragon initially applied for a full restraint on XRP purchases.
However, court vice-chancellor Morgan T. Zurn replaced it with Ripple's order to maintain a "clean zero" in XRP trading activities following the Tetragon application.
This is the latest bad news after Ripple was sued by United Kingdom (UK) asset management firm Tetragon Financial Group LTD, which is also the largest contributor to the Series C fund round and owns a $ 175 million Series C share which covers about 2% of Ripple's equity.
On January 7, Tetragon filed an initial injunction as there was a touching clause that if XRP was found to be ‘securities’, Ripple was obliged to return the shares. However, Ripple denied the allegations.
Prior to Tetragon, Ripple was sued by the Securities and Exchange Commission (SEC) for selling CRP as unregistered securities and the trial is expected to take place on February 22, 2021.
