$1 Million Legal Fight Ensnares Ripple, Bitstamp and Jed McCaleb

tug of war, fight

Bitstamp has initiated legal action over more than $1m in disputed funds related to the sale of nearly 100m XRP last month.

Bitstamp, which operates a Ripple gateway and bitcoin exchange, filed a complaint for interpleader on 1st April in the US District Court in the Northern District of California. Jed McCaleb, the founder of both Ripple Labs and Stellar, and two of McCaleb’s family members were named in the complaint.

The $1,038,172 in disputed funds were used by Ripple Labs to purchase 96,342,361.6 XRP put up for sale through an account allegedly controlled by McCaleb, according to the complaint.

The dispute represents the latest battle between Ripple Labs and McCaleb, who co-founded the company only to later depart and establish Stellar, a fork of the Ripple network. Since then, the two sides have fought over network issues and were later the subject of an in-depth report by the New York Observer.

Origin of dispute

The filing goes on to state that Ripple Labs told Bitstamp that the sale was in violation of an contract agreed upon between the company and McCaleb. That agreement, struck in August 2014, established that McCaleb was entitled to sell only $10,000 in XRP per week during

Read more ... source: CoinDesk