A lawsuit between Jed McCaleb, who co-founded Ripple but left the project at a later date, and current Ripple Labs management, has been finally settled after a protracted legal battle.
The lawsuit resulted from McCaleb’s exit from Ripple in 2013. McCaleb – who departed the company while holding a significant sum of Ripple tokens and company shares – had agreed to disburse his holdings on the market according to a predefined schedule.
According to the official announcement:
“The purpose of the agreement was to ensure distribution of his XRP in a way that would be constructive for the Ripple ecosystem. Since April 2015, Jed has been party to ongoing legal action related to alleged violation of the 2014 agreement.”
In this new arrangement, McCaleb has agreed to distribute his XRP assets according to a timetable that is conducive to a “healthy, growing Ripple ecosystem”. Ripple Labs also has custody of McCaleb’s assets.
“Jed has also agreed to sell all of his shares in Ripple, the company.”
The multi-year release schedule places specific restriction on what amounts of XRP can be sold at various digital currency exchanges; 0.5 percent of average daily Volume on a daily basis for the first year; 0.75 percent for the second and third year; 1 percent for the fourth year; 1.5 percent thereafter.
McCaleb is also required to place 2 billion XRP tokens in a donor-advised charitable fund that is bound by the same restrictions as himself. His children’s XRP assets – amounting to about 5.3 billion tokens – will be held in trust at Ripple Labs, which will administer disbursement of the funds according to the agreed-upon schedule.
Image credit: 1
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
In a twitter post yesterday, Adam Aron, CEO of AMC Theaters, announced the company's plans…
Loopring and Gamestop are two entities that, at first glance, seem very different. One is…
The rise of online betting is plagued with inevitable setbacks. One of which is the…