New York-based blockchain startup R3 Holdco LLC has filed suit against Ripple Labs Inc. in the Delaware Chancery Court. charging Ripple with reneging on a deal to sell the company up to five billion XRP tokens.
R3 claims it contracted with Ripple and agreed that it had the right to purchase up to five billion XRPs at a price of $0.0085 per unit at any point until September, 2019. Ripple XRP is at $0.211578 today and has risen significantly this year, making the contracted terms worth roughly a billion dollars.
The suit claims in June, Ripple chief executive Brad Garlinghouse allegedly attempted to terminate the options contract via an email to R3 chief executive David Rutter. The suit contends that the contract does not allow for a unilateral termination of the deal, and requested a ruling that all its rights be retained, including purchasing XRP at the stated price.
Ripple did not immediately responded to a request for comment.
R3 is a large consortium of banks and financial institutions, and has a large warchest from such supporters as Bank of America, SBI Holdings, Intel and HSBC Holdings.
Ripple is the fourth-largest cryptocurrency by market cap at $8.1 billion. It is backed Standard Chartered Plc , Accenture Plc, and SBI Holdings.
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