The Twelve Billion Dollar Ripple Lawsuit Saga Deepens

Source : The Twelve Billion Dollar Ripple Lawsuit Saga Deepens
A decision made back in 2016 by former boss Chris Larsen causing a rift between him and the company took another twist this week. A deal was signed with a bank consortium which included an option for its partner to buy 5 million tokens at when they were valued at a pittance. has countersued, claiming the deal was made in bad faith.   
Following the meteoric price rise of XRP in the past month that contract is now worth $12 billion and both sides are locked in a courtroom battle that could influence the future of the company and its digital currency.
filed a counterclaim this week in a New York state court with accusations that the consortium signed the deal in bad faith according to Fortune. The San Francisco blockchain company also claims that used the partnership to leech expertise and develop a competing product. The filing includes emails from CEO and represents almost 10% of the company’s 55 billion XRP allocated from the 100 billion total.
The filing claims that does not need to honor the contract as the consortium failed to hold up its end of the deal which was to sign up with a bank. It also claims insider knowledge that knew both JP Morgan Chase and Goldman Sachs were pulling out of the consortium.
A key paragraph in the countersuit states:
Rather, had misrepresented its resources and current ability to perform solely to induce into executing the Agreements. For example, although represented to that it would have access to its large consortium of leading banks, knew and had reason to know that several key banks that would be instrumental to ’s success would soon be departing from its consortium.
In ’s complaint, it claims a decision by last June to terminate the option was unjustified, and the real motive behind the decision was related to XRP’s sudden increase in value.

Banks are betting that blockchain technology will ultimately replace the slow and costly existing methods of fund transfers. offers its own solution in XRP but many of the banks want full control and are developing their own blockchains, such as ’s platform.
XRP has fallen heavily in the past few weeks from an all-time high of $3.80 down over 33% to $2.53 where it currently trades at the time of writing. It is currently the third largest cryptocurrency with a market capacity of just under $100 billion according to Livecoinwatch.
Is the future of banking or will they use their own platforms? Add your comments below.
Images courtesy of LiveCoinWatch, Shutterstock
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