“You Never Owned the Shares”: Linqto Bankruptcy Exposes Pre-IPO Illusion
2025-07-08 21:03:03
Main Idea
Linqto's bankruptcy filing exposes issues with its pre-IPO investment model, including misleading claims about ownership of shares in companies like Ripple, and has triggered regulatory scrutiny and investor concerns.
Key Points
1. Linqto filed for Chapter 11 bankruptcy, listing assets and liabilities between $500M-$1B, with over 10,000 creditors.
2. The SEC is investigating Linqto for misleading retail sales of Ripple 'units', despite Ripple denying any business relationship with Linqto.
3. Former CEO William Sarris allegedly violated SEC rules by offering Ripple shares at a 60% markup, exceeding the 10% limit.
4. Linqto's collapse has shaken confidence in retail access to private equity, highlighting risks in pre-IPO investment platforms.
5. Ripple CEO Brad Garlinghouse clarified that Linqto's shares were purchased on the secondary market and not through Ripple, distancing the company from Linqto's practices.
Description
Linqto, a once-prominent private investment platform promising everyday investors access to pre-IPO tech giants, has filed for Chapter 11 bankruptcy, and with it, a disturbing revelation: customers may never have truly owned the shares they believed they were buying. Source: Epiq The San Jose-based fintech firm submitted its bankruptcy filing in the Southern District of Texas on Monday, listing both assets and liabilities estimated between $500 million and $1 billion. The company also disclosed ...
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