News
  • Zafar Naik
    author-profile

    Zafar Naik right arrow

    Author

    Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

    • Reviewed by: Sohrab Khawas

      author profile

      Sohrab Khawas right arrow

      Reviewed

      Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.

      • author twitter
      • author linkedin
    • 2 minutes read

    Ripple CEO Breaks Silence on Linqto Scandal “No Business Relationship” 

    Story Highlights
    • Ripple CEO confirms Linqto bought shares only via secondary market, not from Ripple.

    • Linqto faces bankruptcy, sparking investor panic over frozen accounts and refunds.

    • John Deaton urges calm, saying bankruptcy may help protect investor interests.

    As investor panic spreads through the XRP community, Ripple CEO Brad Garlinghouse has broken his silence, offering a firm statement that sets the record straight on Ripple’s involvement with troubled private equity platform Linqto.

    In a tweet that comes amid mounting scrutiny and a potential bankruptcy filing at Linqto, Garlinghouse wrote:

    “To be clear, on Ripple’s end: What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market from other Ripple shareholders (never directly from Ripple).”

    That line says a lot about the controversy that is flaring up. Read on for all the clarity you need. 

    Linqto in Crisis Mode

    Linqto, once touted as a gateway for retail investors to access high-profile private companies like Ripple and Circle, is now facing federal investigations and a looming financial collapse. The platform abruptly halted operations, froze user accounts, and sparked outrage with a proposed refund model that only returns original investments, cutting investors off from any profits made.

    Garlinghouse: “No Business Relationship” With Linqto

    Garlinghouse didn’t stop at clarifying share ownership. He added:

    “Apart from Linqto being a shareholder, Ripple has never had a business relationship with Linqto, nor have they participated in our financing rounds. We stopped approving more Linqto purchases on secondary markets in late 2024 amid growing skepticism.”

    This distancing move sends a clear message: Ripple wants no part in the fallout.

    And for good reason. The blowback from Linqto’s meltdown is already threatening investor trust across the broader crypto equity market. Pre-IPO platforms, once hailed as democratizing access, are now under fire for lacking transparency and investor protection.

    John Deaton Calls for Calm

    Should you be panicking? Probably not.

    Attorney John Deaton, who is also a Linqto investor, recently addressed the growing anxiety within the XRP community. In a detailed post, he acknowledged how deeply personal the situation is for many – calling out that some investors have their entire savings or retirement funds tied up in the platform.

    Deaton struck a reassuring tone, explaining that Linqto has no debt, that shares are accounted for, and that a bankruptcy process could actually offer protection and transparency.

    “There is good reason to believe you’re getting your money back – and it’s very possible to realize the upside of those investments,” he wrote.

    His message was clear: stay calm, stay informed, and don’t lose hope.

    For now, while Ripple may not be legally tied to Linqto, the scandal’s proximity is enough to raise red flags. Garlinghouse’s clarity certainly makes the picture clearer though. 

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    What is the Linqto scandal?

    The Linqto scandal refers to the current crisis faced by the private equity investment platform Linqto. It involves federal investigations, a looming financial collapse, frozen user accounts, and a controversial proposed refund model that only returns original investments, denying users their profits. This has caused significant panic, especially among investors who held shares of companies like Ripple through the platform.

    What is Linqto’s proposed refund model, and why is it controversial?

    Linqto’s proposed refund model is controversial because it only returns investors’ original investments, effectively cutting them off from any profits made on their holdings. This has sparked outrage among users who invested in high-profile private companies like Ripple through the platform.

    Show More

    Related Articles

    Back to top button