R3’s Lawsuit Against Ripple To $12 billion
Bit of back-story
Half a year ago Ripple’s former CEO Chris Larsen decided to sign a deal with a bank consortium R3. The terms of the partnership agreement are that R3 can buy 5 billion XRP, paying just $0.0085 per unit. Since Ripple and R3 entered into their agreement XRP exchange rate has increased by 45000% and reached its peak last week at around $3.84.
Current XPR exchange rate is $1.85. Nowadays, when Ripple became the world’s second most valuable cryptocurrency after bitcoin, this contract is worth at least $12 billion. Not surprisingly in these circumstances, that R3 and Ripple have filed lawsuits against each other.
R3 asks the court to order Ripple to perform their obligations under the contract and allow the firm to purchase the 5 billion XRP — now worth around $12 billion at its Jan 10.- for just $42.5 million.
Ripple claims that R3 has not fulfilled its obligations under the contract, which in turn take away any responsibility from the California start-up.
Besides, Ripple has filed a countersuit against R3 in New York state court and blame the company in signing the deal in bad faith, namely, R3 uses the agreement to steal Ripple’s expertise in order to develop a competing product.
Both companies refused to comment about these cases.
Meanwhile, the fate of 5 billion XRP has remained unsolved.
In October, the Delaware court refused to hear the case, stating that it did not come under its jurisdiction. In December, a similar response to Ripple’s counterclaim against R3 was given by a Californian judge. Now the legal showdown will now head to New York.