News View Non-AMP

Ripple Shares Are Safe Despite Linqto Bankruptcy, Says John Deaton

Published by
Debashree Patra and Qadir AK

The Linqto collapse has sent shockwaves through crypto’s private equity investment world, especially among retail investors with holdings in Ripple, Circle, and SpaceX via SPVs on the platform. Amid finger-pointing and fear, attorney John Deaton is now stepping into the chaos, not just with commentary, but a promise to fight for those affected.

With many holding their life savings in private equity deals through the platform, confusion and fear are running high. But Deaton says there’s more hope here than people realize.

Investors Still Come First in Court

Deaton pointed out something important that needs attention. He explained that in this bankruptcy, Linqto has no major creditors standing in front of its customers. That means the 11,500 people who bought into Ripple and other private companies through Linqto’s SPV units are first in line. Regular shareholders of Linqto, on the other hand, are last in the queue. This legal structure gives investors a real shot at getting their money back, and maybe even more.

All the Big Shares Are Still There

Despite all the chaos, Deaton confirmed that the investments are still accounted for. Ripple, Circle, Kraken, SpaceX, and other holdings are still on the books. Ripple alone makes up 4.7 million shares, and the value of those has increased since Linqto made the purchases. Circle shares have gone up even more. According to Deaton, Circle holdings have grown by more than six times the original purchase value.

Ripple also bought back shares in June 2025 at 175 each. If that price is used to value what investors hold, their portion of Ripple could be worth over 800 million dollars.

Ripple Confirms the Shares Are Real

In response to the controversy, Ripple CEO Brad Garlinghouse confirmed that Linqto owns 4.7 million shares of Ripple. These were bought from secondary market sellers, not from Ripple itself. He made it clear that Ripple has no business ties with Linqto and didn’t participate in their resale schemes. He also stressed that XRP, the cryptocurrency, has nothing to do with these shares. This matters because many investors were confused or misled into thinking they were dealing directly with Ripple.

No More Guessing Games

Some former employees and the Wall Street Journal claimed that Linqto’s founder is the real culprit, potentially implicated in fraudulent practices and severe securities violations. Meanwhile, others allege that the current CEO is leveraging the bankruptcy as a strategic power tool by turning a small issue into a big power play. Deaton said people should stop guessing because the truth will come out. Internal emails and financial records will all be revealed in court.

If all sides work together, a plan could be approved in under a year. But if it turns into a long legal fight, it could drag on for years and eat away at the value. For now, Deaton is focused on protecting the investors and helping them recover.

FAQs

What is the Linqto collapse, and what are its key issues?

The Linqto collapse refers to the ongoing crisis of the private equity platform. It involves federal investigations (SEC, DOJ), frozen investor accounts, a looming bankruptcy, and allegations of securities violations, including selling shares at inflated prices and targeting non-accredited investors, leaving 13,000 users in limbo.

Why did Linqto collapse, leading to federal investigations?

Linqto collapsed due to alleged widespread securities violations and potentially fraudulent practices. Key reasons include former CEO William Sarris allegedly inflating Ripple share prices by over 60% and selling client stock without consent. Linqto also violated regulations by allowing up to 5,000 non-accredited investors into high-risk private equity deals.

Debashree Patra and Qadir AK

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

Recent Posts

MOODENG Price Prediction – Will It Hit a New High After 40% Surge?

MOODENG, the hippo-themed meme coin on Solana, has surged 40% in the past 24 hours…

July 3, 2025

Cardano (ADA) on Rise: Technical and Social Momentum Point to a Bullish Future Beyond $1

Cardano has attracted significant attention since the start of the month, with prices surging nearly…

July 3, 2025

China’s Big Tech Wants Yuan Stablecoin to Break USDT’s Lead

Two of China’s biggest tech firms, JD.com and Alibaba’s Ant Group, are urging the country’s…

July 3, 2025

Chrome And Firefox Users Targeted in Coordinated Crypto Credential Attacks

Popular web browsers Google Chrome and Mozilla Firefox are facing serious security threats. While Chrome…

July 3, 2025

Why are Bitcoin, Ethereum, and XRP Prices Up Today?

The crypto market is witnessing another green day as Bitcoin, Ethereum, and XRP post solid…

July 3, 2025

Cardano (ADA) Price Set for 30% Surge in July

Cardano News Today - ADA Price ended June 2025 with a steep 16% drop, closing…

July 3, 2025