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- Zameer Attar
Zameer Attar
- Reviewed by:
Anjali BelgaumkarWriter by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
- Aug 05, 2025 10:08 UTC
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Deaton Confirms: August 6 LINQTO Hearing Isn’t About Ripple’s $18M XRP Sales
Attorney John Deaton seeks a “Constructive Trust” in the LINQTO case to protect investors’ rights tied to the DIP loan.
Deaton also sues LINQTO’s founder over alleged unlicensed securities sales and continues to support Ripple in the XRP-SEC case.
Attorney John Deaton recently shared an important update on X (formerly Twitter) about the ongoing LINQTO case. He said he’s asking the court to apply something called a “Constructive Trust” in the case related to the DIP Loan. This would help make sure that no one unfairly benefits and that any money or assets go to the people who rightfully deserve them.
What’s Happening in the LINQTO Case?
The main issue being discussed in court on August 6 is about moving the case from Texas to Delaware. This motion was filed by a shareholder group called Sapien Group, who wants the case to be heard in a different state.
However, Deaton has filed a separate class action lawsuit against LINQTO’s founder, William Sarris. He claims the company sold unlicensed securities in July without giving investors enough information, which misled thousands of users. His goal is to help those users get their money back.
Some people on social media thought that the August 6 hearing was about Deaton’s objections to a $18 million Ripple sale or the DIP loan. But Deaton clarified that those issues would actually be discussed at a later hearing on August 17.
Deaton’s Support For Ripple
While dealing with LINQTO, Deaton is also continuing to back Ripple Labs in their legal fight with the U.S. Securities and Exchange Commission (SEC). The SEC previously said that Ripple had raised $1.3 billion by selling XRP as an unregistered security.
He has filed many legal briefs in Ripple’s favor and continues to defend XRP holders. The case has been going on for nearly five years, and a key update is expected when the SEC files a status report on August 15.
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FAQs
The LINQTO case involves allegations of selling unlicensed securities and a dispute over transferring the case from Texas to Delaware courts.
Key LINQTO matters involving Ripple’s $18M sale and DIP loan will be addressed at an August 17 hearing, not the August 6 proceeding.
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