Ripple and R3 entered into a confidential settlement in 2018, and some critical details of that just surfaced in the recent lawsuit by the US Securities and Exchange Commission (SEC).
As pointed out by Ledger Insight, Tuesday’s legal papers detailed that 'an enterprise software firm' exercised its rights to purchase 1.04 billion XRP in 2019. Though the lawsuit did not specify the name of R3, details like Manhattan-based company clearly indicate it to be the one.
“Ripple entered into an agreement with an enterprise software firm ('Option Investor B') based in Manhattan that gave the firm an option to buy up to 5 billion XRP at a discounted price in exchange for efforts to help Ripple develop a 'use' for XRP,” the SEC’s lawsuit stated.
“The amount of XRP available for purchase under the option was later reduced, and Option Investor B purchased at least 1.04 billion XRP in 2019.”
Though the amount involved in the settlement was not disclosed, an estimation can be made with the market price of XRP tokens during that period.
XRP price fluctuated between $0.24 and $0.47 from the beginning of the year and September 2019, when the options agreement expired. Based on those prices, R3 must have paid from at least $240 million up to $470 million for those 1.04 billion XRPs.
The Dispute
The dispute between the two Blockchain giants started as R3 Holdco accused Ripple Labs of failing to pay 5 billion XRP tokens owed under the partnership agreement. Ripple later accused R3 of entering into the partnership under false pretenses.
The companies fought in multiple US courts, and the settlement came after a victory of R3 in a California court.
“R3 HoldCo LLC, R3 LLC, Ripple Labs Inc. and XRP II, LLC announce that they have reached a settlement of all outstanding litigation between the parties,” Ripple then stated. “The terms of the agreement will remain confidential and both sides look forward to putting these disputes behind them.”
