Interesting background read on what happened
The New York Observer has published a near 15,000-word story that takes a detailed look at the alleged historical "bad blood" between decentralized payment network startups Ripple Labs and Stellar, and the impact of this relationship on events in the wider bitcoin ecosystem. “It has everything: sex, huge money, fraud, genius, betrayal, international intrigue and government raids.” Of particular note are the story's main participants Jed McCaleb, the founder of now-defunct bitcoin exchange Mt Gox, Ripple Labs and Stellar, and Stellar executive director Joyce Kim who bear the brunt of the article's barbs. The Observer reports that McCaleb and Kim have long had a personal relationship that complicated McCaleb’s relationship with other senior executives and board members at Ripple Labs, and ultimately lead McCaleb to leave that company and found competitor Stellar.
http://www.coindesk.com/history-ripple-stellar-tell-all-report/