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.
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, Ripple’s CEO Brad Garlinghouse has stepped in to clear up confusion surrounding Ripple’s 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,
“Linqto owns 4.7 million shares of Ripple, purchased solely on the secondary market from existing Ripple shareholders — never directly from Ripple,” 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.
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.
“I have no idea how Linqto managed its clients or sold ‘representative units’ 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,” Garlinghouse added.
While Linqto’s future remains uncertain, with talk of bankruptcy and ongoing federal investigations, Garlinghouse’s 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 Linqto’s legal and financial troubles.
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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