Stellar Enters Legal Dispute With Bitstamp, Ripple Labs and Jed McCaleb

court, legal

The legal battle over roughly $1m in disputed funds continues between Ripple Labs and founder and ex-employee Jed McCaleb, with a flurry of new court filings over the past month setting the stage for conflict between the two sides.

In total, $1,038,172 is currently being held by digital currency exchange Bitstamp, an amount that both Ripple Labs and the Stellar Development Foundation, McCaleb’s current employer, are now seeking.

Both sides have weighed in on whether the court should grant Bitstamp’s request to be discharged from the case after it filed a complaint for interpleader on 1st April. As part of that request, dated 13th May, Bitstamp asked the court for permission to transfer the funds to Stellar.

Bitstamp stated at the time:

“In the alternative, in light of Ripple’s cross-complaint indicating that its dispute with McCaleb and [McCaleb’s cousin Jacob] Stephenson is a simple contract dispute to which Bitstamp is not a party, Bitstamp requests dismissal of the action.”

In its request, the exchange suggested that it faced the threat of litigation owing to its continued role in the lawsuit.

Growing court battle

The fight entered a new phase last month when US District Judge William Orrick ordered a temporary

Read more ... source: CoinDesk