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.
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.
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.
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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