Linqto Files for Chapter 11 Bankruptcy: A Deep Dive into the Ripple Shareholder’s Downfall
Linqto, a private investment platform that enabled investors to acquire shares in pre-IPO companies, has filed for Chapter 11 bankruptcy. This development follows federal investigations and allegations of securities law violations. The company, which holds 4.7 million Ripple shares, submitted its bankruptcy petition to the US District Court for the Southern District of Texas.
Ripple’s Connection with Linqto
Brad Garlinghouse, CEO of Ripple, clarified that Linqto is solely a shareholder with no business affiliations to Ripple. “Apart from Linqto being a shareholder, Ripple has never had a business relationship with Linqto,” Garlinghouse stated on X.
Financial Uncertainties and Regulatory Scrutiny
The valuation of Linqto‘s Ripple shares remains unclear, with estimates approximating $450 million. The company is under investigation by the SEC for potential securities violations. Former CEO William Sarris is accused of selling shares at prices exceeding SEC regulatory limits.
Looking Ahead
With its operations halted and a bankruptcy hearing on the horizon, Linqto‘s future remains uncertain. Ripple has severed ties, discontinuing share approvals in late 2024.
