On Monday, Linqto, a San Francisco-based investment platform, released an official statement denying the misinformation shared by Matt Rosedin, Founder and CEO of CapSign. A post shared by Mr. Rhodesian on X falsely indicated that a private equity fund being established by CapSign holds 4.7 million Ripple shares held by Liquidishares.
In June, it was reported that the investment company, Linqto, was heading toward bankruptcy. The reports gained more credibility after Mr. Rosendin encouraged false information that his company, CapSign, holds $4.7 million of Ripple, further boosting the false idea of Linqto’s bankruptcy.
Linqto denied the false statement shared by Mr. Rosendin by saying, “Contrary to published reports on X, Linqto confirms that Liquidshares’ holdings of Ripple shares remain unchanged.”
Due to the growing speculations of Linqto’s bankruptcy reports, users feared their Ripple shares, bought through Linqto, might be at risk. To clear the rising doubts, Ripple CEO Brad Garlinghouse clarified the confusion of Ripple’s connection to the Linqto. He stated–
“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).”
Garlinghouse also said that, besides being a shareholder, Ripple has no connection with Linqto, and the trading between them was stopped in 2024 amid growing concerns.
Linqto explained that the firm has incorporated a new management team to ensure the investments in the private held companies are secured. It also disclosed that Linqto retained an independent third-party analyst firm to review the internal analysis and check for any risks.
Linqto has prioritized cooperating with regulators for the ongoing investigations regarding compliance violations. The company’s transactions will remain suspended until further notice from the officials is issued.
Currently, Linqto is under investigation by both the Securities and Exchange Commission (SEC) and and US Department of Justice (DOJ) for its misleading sales practices. Until the legal clarity is confirmed with Linqto, Ripple is keeping its distance from the troubled firm.
Linqto, a private equity investment platform, is facing significant issues including a federal investigation by the SEC and DOJ for alleged “pervasive securities-law violations,” misleading sales practices, and potentially selling customer stock without authorization. Their operations are currently suspended, and customer accounts have been frozen since February 2025. The company is exploring restructuring, and there are concerns about potential bankruptcy.
Linqto has been subject to bankruptcy rumors, exacerbated by false information. While Linqto has stated its shares are secure and a new management team is in place, the firm’s transactions remain suspended. Investors’ Ripple shares held through Linqto are now confirmed by Ripple, but the firm is under investigation by the SEC and DOJ.
Ripple CEO Brad Garlinghouse clarified that Linqto is a shareholder of Ripple (owning 4.7 million shares), but Ripple has no direct business relationship with Linqto. Ripple has never sold shares directly to Linqto and stopped approving secondary market purchases through Linqto in late 2024 due to “growing skepticism” about Linqto’s operations.
In a year where altcoins continue to defy logic and gravity, Worldcoin has found itself…
Ripple’s XRP hasn’t moved much lately, but signs are building that a bigger price jump…
Elon Musk’s feud with President Trump is no longer just political - it’s hitting the…
Ethereum's price is holding steady right now, moving within a tight range as the market…
The U.S. Bitcoin Spot ETF sector continues to dominate headlines with its massive accumulation of…
Bonk.fun is shaking up the meme coin scene on Solana. In just a few weeks,…
