Customers Could Be Crushed—Expert Flags Deep Risk for Linqto Investors
Main Idea
Linqto's Chapter 11 filing may reclassify investors as unsecured creditors, leaving them at risk of significant losses despite the company's substantial assets.
Key Points
1. Linqto's Chapter 11 filing could reclassify customers as unsecured creditors, potentially leaving them with significant losses.
2. The company lists over $500 million in private tech share assets and between 10,000 and 25,000 customers owed money, but few other general unsecured creditors (GUCs) are noted.
3. Linqto's structure failed to establish series LLCs or properly segregate assets, increasing risks for investors.
4. Ripple CEO Brad Garlinghouse confirmed Linqto holds 4.7 million Ripple shares, but the company has stopped further share-related activities.
Description
A dire warning signals investors should be “very concerned” as Linqto’s bankruptcy exposes collapsed legal structures, pooled customer assets, and looming reclassification as unsecured creditors. Linqto Collapse Is a ‘Brutal Wake-up Call’—Why Customers Should Be Very Concerned A cascade of structural failures in Linqto’s investment model now threatens to leave thousands of users with little
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