Distributed ledger start-ups Ripple and R3 have started a legal battle with billion-dollar implications.Ripple and R3 that have seperately raised
Distributed ledger start-ups Ripple and R3 have started a legal battle with billion-dollar implications.
Ripple and R3 that have seperately raised about $100 million in venture capital funding are suing each other, according to reports published in cryptocoinnews.com, Reuters (reuters.com) and Forbes (forbes.com).
R3 is a New York-based blockchain start-up, while Ripple Labs Inc. is a rival company.
In September 2016, the blockchain companies entered into an agreement, part of which gave R3 the option to purchase 5 billion XRP at an exercise price of $0.0085 between then and September 2019, according to R3 as quoted Forbes.
The R3 suit pointed out that Ripple CEO, Brad Garlinghouse, emailed R3 CEO David Rutter to terminate the option contracts in June 2017. The R3 reportedly asks the court to reinstate the rights granted in it, as Forbes reported.
“R3 does not discuss the details of pending litigation. We are confident in our position and hope for a speedy resolution of this matter.”, as R3 commented in a written statement that was cited in Forbe`s publication.
Ripple reportedly filed a countersuit agains R3 in the Supreme Court of California, as cryptocoinnews.com commented.
As a Ripple spokeperson wrote in a statement sent to the media:
“Our filing is straightforward — R3 misrepresented their ability and intent to deliver on their commitments. Given XRP’s ~4000% increase over the course of the year, R3 suddenly wants to tap into the value of XRP, though the facts are clear that they did not earn any option based on our agreement.”
This option contract is reportedly worth more than $1 billion as the XRP has raised in value to $0.21 since the companies entered the options agreement, as observed by Reuters.