Two blockchain giants R3, an operating firm behind leading US-based Blockchain consortium R3CEV, and Ripple, a development company of the fourth-largest Blockchain network in the world, are embroiled in a legal battle.
R3 has filed a lawsuit that states, R3 and Ripple had entered into an agreement in September, 2016 which gives R3 the purchasing right of 5 billion XRPs (Ripple Tokens) at a fixed price of US$0.0085 over a three-year period. As per the contract, R3 reserves the right to purchase XRPs at the old rate which is significantly lower than the current price of US$0.21 until September 2019.
Against the agreement, the CEO of Ripple, Brad Garlinghouse, attempted to terminate the contract through an email to R3 CEO David Rutter. Now R3 seeks to retain its right to purchase XRPs as per the agreement, over the next two years.
Ripple in a counterclaim, said, R3 has violated the agreement signed in 2016 and has not fulfilled its previous commitments that also included a parallel technology partnership agreement, in which – Ripple would benefit from R3’s infrastructure and banking partnerships. R3 also agreed to promote Ripple technology.
The details of Ripple’s lawsuit remain private and limited to the public. However, it has been revealed that the company is demanding that R3 compensate the damages as incurred from the breach of the agreement before regaining its right to purchase XRP.
In response to R3’s claim, Ripple has accused the former of violating its parallel technology partnership agreements and not providing access to its banking network. The company further stated that R3 made a request to make a bulk purchase of XRPs in the light of XRP’s skyrocketed value, over 4,000%, in just over a year.
In a statement, R3 said:
“R3 does not discuss the details of pending litigation. We are confident in our position and hope for a speedy resolution of this matter.”
A Ripple spokesperson told:
“Our filing is straightforward – R3 misrepresented their ability and intent to deliver on their commitments. Given XRP’s ~4000 percent 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.”
While the court’s decision is still pending, depending on the two lawsuits, it could result in Ripple being ordered to grant R3 the permission to purchase XRPs, on the condition that R3 meets all previously made promises of parallel technology partnership and compensates the damages as requested by Ripple.
Also Read: Ripple Set’s Up New Office in Mumbai, India.
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