$XRP lawyer John Deaton vowed to protect consumers in the Linkto bankruptcy, and believes they should get better returns.

John Deaton, a vocal advocate for crypto investors and XRP holders, has shared an optimistic outlook amid the Linkto bankruptcy proceedings. According to Deaton, users could receive priority over equity shareholders, potentially leading to a full recovery or significant profits.

Linqto Bankruptcy: Users First

In a recent X post, $XRP lawyer John Deaton highlighted the Linqto bankruptcy proceedings, which offer a glimmer of hope for users.

Despite Linqto's financial woes, John Deaton is optimistic for customers, citing his priority for customers. “The great news is that Linqto has no creditors against its users,” he said.

Committed to protecting consumers from harm, Dayton wrote,

Some people have their life savings on the platform and I will do whatever I can to make sure they don’t lose it. In fact, they SHOULD get MORE than the value of their initial investments.


Further, Dayton added that Linqto customers, including the 11,500 Ripple SPV unit holders, will have priority over Linqto equity shareholders in court. Additionally, shares of investment companies such as Circle,

Ripple, and SpaceX are accounted for. He added that there will be an exception for the 3% of Ripple shares that were sold without the customer’s knowledge. However, the funds from this sale are available.

Additionally, Dayton revealed that six people—three former employees and three influencers—claimed to have made substantial investments on the platform.

They claimed that they were unaware of the “shenanigans” and corruption that took place within the platform that violated securities laws. He added,

The good news is EVERYTHING will be public and everyone will get to know who invested what and who knew what. Internal emails, emails to third-parties, including related to advertising and marketing can be part of the process.


What happened to Linqto?

In particular, Linkto, a San Francisco-based investment platform, is on the brink of bankruptcy amid allegations of illegal business practices and securities law violations under former CEO William Sarris.

The company, which allowed users to buy shares in private crypto companies like Ripple and Circle through pre-IPO shares, is facing investigations by the SEC and the US DOJ.

Sarris allegedly sold Ripple shares at a 60% markup without informing users, resulting in a profit of $2 million. However, Ripple CEO Brad Garlinghouse clarified that Linqto acquired 4.7 million Ripple shares in the secondary market from existing shareholders, not directly from Ripple.

He stressed that Ripple has no formal business relationship with Linqto and did not sell any shares to the platform. CTO David Schwartz also explained the matter, saying, "You don't own the shares directly, but you own part of a legal entity that owns the shares."

Linkto's refund strategy raised investor concerns.

Earlier, John Deaton sounded the alarm over Linkto's controversial refund strategy. He warned investors that they could miss out on significant profits.

Importantly, Linkto's proposal to return only the original investment amount has sparked outrage among investors.

In particular, investors who have invested in assets like Ripple and Circle are panicking, as the value of these shares has seen a significant increase.

Dayton highlighted his experience, where a $30,000 investment in Circle grew to $157,000, exposing investors to potential losses. The situation has raised urgent questions about investor rights and protections in the crypto space.

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