Two of the Largest Blockchain Firms Sue for Over $1b in Digital Currency
Some of the largest blockchain firms have lost their limelight this year due to the increasing popularity of cryptocurrency and crypto-assets as a whole. The two leaders in the market, R3 and Ripple are now suing each other over a dispute regarding the cryptocurrency XRP.
This past Friday, September 8th, R3 which is a group of more than 80 various financial institutions, sued one of its partners, Ripple, over an options contract to purchase over $1 billion in XRP. That same day, in a California court in the city of San Francisco, Ripple countersued R3.
R3 has stated within the lawsuit that during September of 2016, the two companies entered into an agreement where R3 would have the option to buy up to $5 billion XRP at a certain price of $0.0085 between a time period of three years. Since XRP soared a staggering 3,000% during this year alone, the options would be worth over $1 billion at the current time.
Ripple is a San Francisco-based company that uses cryptocurrency as well as blockchain technology to make wire transfers across international lines as well as other cross-border exchanges. R3 which is a New York based tech-company, uses similar technology in its business. Both use a distributed financial ledger which does not use cryptocurrency but can effectively make multiple banks cooperate easier and more efficiently.
The law suit consists of R3 CEO getting emailed by Ripple’s current CEO that Ripple would like terminate the option contract asking the court to reinstate the rights granted on it.
The suit will determine where the massive amount of options currency will go between these two companies. With the market cap of the currency XRP skyrocketing since last year from $236 million to $8 billion as of this September, the lawsuit will take time to settle the massive amount of money.