Ripple CEO Brad Garlinghouse has stepped in to clear the air amid rising investor concerns, confirming that Linqto's 4.7 million Ripple shares were all acquired on secondary markets — not through any direct sales from Ripple.


🔹 Ripple Emphasizes: No Business Relationship with Linqto

Responding to growing unease from retail investors who believed they were buying direct equity in Ripple through Linqto, Garlinghouse clarified:

“Ripple has never had a business relationship with Linqto, nor did they participate in any of our fundraising rounds,” he stated on platform X.

According to him, Linqto purchased Ripple shares exclusively from existing shareholders on secondary markets. Due to increasing skepticism, Ripple stopped approving further Linqto secondary purchases by late 2024.


🔹 Thousands of Investors, No Direct Ownership

The situation grew more complex after it was revealed that around 11,500 users invested through SPV structures (special purpose vehicles) intended to hold Ripple equity. However, Ripple’s CTO David Schwartz clarified:

“You don’t directly own Ripple shares,” he wrote. “You own a portion of an entity that owns the shares.”

This form of indirect ownership has raised legal uncertainties, especially if investors were unaware of the setup.


🔹 Linqto Under DOJ Investigation, Facing Bankruptcy

The controversy intensified when the U.S. Department of Justice launched an investigation into Linqto. The platform, which promised to “democratize” access to Ripple pre-IPO shares, now faces potential bankruptcy. Reports suggest that up to 5,000 of the involved investors may not be accredited — a serious regulatory concern.

Attorney John E. Deaton described the situation as “a total mess,” warning that many investors may not fully understand what — or how — they actually own.



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