Ripple Shareholder Linqto Files for Bankruptcy Amid Securities Law Concerns and Ongoing Investigations

Key Points

1. Linqto owns 4.7 million Ripple shares acquired on the secondary market, valued at approximately $450 million based on a share price of $95.5.

2. Federal investigations into Linqto's business practices include allegations of misleading investors and violating SEC rules by marking up securities beyond the 10% limit.

3. Ripple has distanced itself from Linqto, ceasing share purchases in late 2024, coinciding with regulatory pressures and internal disputes within Linqto.

4. Linqto's bankruptcy filing underscores broader regulatory challenges in private securities markets, particularly those involving high-profile crypto assets like Ripple.

5. An upcoming bankruptcy hearing will feature testimony from key restructuring and advisory personnel, further examining Linqto's operational and compliance failures.