🔔 BREAKING: Ripple Shareholder Linqto Files for Chapter 11 Bankruptcy 🔔
📉 After months of regulatory heat and legal uncertainty, private investment platform Linqto — known for holding 4.7 million Ripple shares — has officially filed for Chapter 11 bankruptcy.
🔍 Here’s what you need to know:
🔸 📅 Filing Details:
Filed on Monday in the U.S. District Court for the Southern District of Texas.
🔹 📍 First Hearing: Scheduled for Tuesday at 9:00 PM UTC.
🔸 💼 Ripple Distances Itself:
Ripple CEO Brad Garlinghouse confirms:
> “Linqto is just a shareholder — no business relationship exists.”
🔸 📊 Estimated Value:
Linqto's Ripple shares could be worth $450M–$500M, depending on current private market pricing.
🔸 🚨 SEC Investigation & Violations:
Facing federal investigations over securities law breaches.
Accusations include offering Ripple shares at inflated prices, and selling to ineligible investors.
Allegedly failed to obtain transfer permissions from issuers like Ripple.
Internal audit reveals disturbing non-compliance practices.
🔸 🔒 Platform Shutdown:
Linqto ceased operations on March 13, halting all revenue activities.
🔸 🚫 Ripple Cut Ties in 2024:
Ripple stopped approving Linqto’s purchases of secondary shares amid FINRA’s broker-dealer review.
🔸 ⚖️ Lawsuits & Internal Chaos:
Former CRO sues Linqto leadership for retaliation and compliance failures.
New CEO Dan Siciliano admits:
> “These aren’t small regulatory missteps—they’re deep-rooted issues.”
🔸 📢 Linqto Responds to Rumors:
Despite allegations, Linqto claims holdings of Ripple remain unchanged:
> “We continue to own 4.7 million Ripple shares.”
📌 The Bottom Line:
This bankruptcy marks a major blow in the world of private crypto investments. As Ripple seeks to distance itself, all eyes turn to Tuesday’s hearing for clarity on Linqto’s next steps and the fate of its investors.
