Ripple CTO Drops Bombshell On Pre-IPO Shares As Linqto Meltdown Explodes

Key Points

1. Linqto's financial collapse has left approximately 13,000 investors at risk, with accounts frozen since February and potential Chapter 11 bankruptcy looming.

2. Ripple CTO David Schwartz clarified that investors do not own Ripple shares directly but rather a portion of a legal entity holding the shares, raising concerns about operational risks.

3. SEC and US Department investigators found that Linqto marked up Ripple shares by over 60%, with allegations of securities-law violations and halted trading.

4. Schwartz denied any direct connection between George Soros and Ripple, though Soros Fund Management invested in PolySign, a related company.

5. Linqto created over 500 SPVs to avoid public-reporting obligations, with questions arising about beneficial ownership and tax liability if shares were not properly transferred.