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- ๏ปฟAnjali Belgaumkar
๏ปฟAnjali Belgaumkar
Writer 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 โEnthusiastโ but trust me I'm getting there.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 03, 2025 04:40 UTC
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Is Ripple at Risk? Garlinghouse Breaks Silence on Linqto Scandal
Linqto Faces Bankruptcy and Probes: Investment platform Linqto is under SEC and DOJ investigation for its private equity sales practices.
Ripple Clarifies No Ties to Linqto: CEO Brad Garlinghouse confirms Ripple has no business connection with Linqto and XRP is not impacted.
In a new development, Linqto, an investment platform known for offering shares of private companies like Ripple, is reportedly heading toward bankruptcy. According to a Wall Street Journal report on June 30, the firm is also under investigation by both the U.S. Securities and Exchange Commission (SEC) and the Justice Department over its sales practices.
SEC & DOJ Investigate Linqto
Linqto made a name for itself by giving everyday investors access to private stock deals typically reserved for the wealthy. But now, with legal troubles mounting, Rippleโs CEO Brad Garlinghouse has stepped in to clear up confusion surrounding Rippleโs connection to the firm.
Garlinghouse addressed concerns from the XRP community and Ripple supporters who feared their Ripple shares, bought through Linqto, might be at risk. In a social media post, he clarified,
โLinqto owns 4.7 million shares of Ripple, purchased solely on the secondary market from existing Ripple shareholders โ never directly from Ripple,โ he said.
He explained that Ripple has never had a business relationship with Linqto and that the company stopped approving secondary market purchases through Linqto in late 2024 amid growing concerns.
Ripple Distances from Linqto
After his post gained traction, Garlinghouse followed up to explain the difference between XRP tokens and Ripple shares, stressing that this issue only involves Ripple shares held by Linqto, not the cryptocurrency itself.
โI have no idea how Linqto managed its clients or sold โrepresentative unitsโ of Ripple shares. What I can confirm is that Linqto owns those 4.7 million shares, and the good news is that their value has increased over time,โ Garlinghouse added.
While Linqtoโs future remains uncertain, with talk of bankruptcy and ongoing federal investigations, Garlinghouseโs message offered some reassurance to Ripple investors. The WSJ also reported that the company could be heading toward a possible restructuring.
For now, Ripple continues to distance itself from the troubled investment firm, making it clear that its own operations and share value remain unaffected by Linqtoโs legal and financial troubles.
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FAQs
According to attorney John Deaton, investors who bought Ripple shares through Linqto’s SPV (Special Purpose Vehicle) units are “first in line” in the bankruptcy proceedings, as Linqto has no major creditors ahead of them. This gives them a strong chance of recovering their investment, and potentially their profits, unlike regular Linqto shareholders who are last.
Linqto’s 4.7 million Ripple shares have increased in value since their purchase. Based on Ripple’s June 2025 share buyback price of $175 each, the investors’ portion of Ripple could be worth over $800 million. John Deaton believes investors still have a “real shot at getting their money back, and maybe even more,” despite the bankruptcy.
XRP tokens are a cryptocurrency used for cross-border payments, while Ripple shares represent equity ownership in the private company Ripple Labs. This distinction matters because the Linqto scandal only involves Ripple shares that Linqto sold, not the XRP cryptocurrency. Ripple CEO Brad Garlinghouse emphasized this to clarify that XRP’s value is unaffected by Linqto’s issues.
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