Ripple Shares Remain Secure as Linqto Denies Bankruptcy Rumors and Legal Threats Escalate

Linqto, a private investment platform based in San Francisco, has pushed back firmly against growing bankruptcy rumors, affirming that investor holdings—including Ripple shares—remain intact and protected. The company’s statement comes amid regulatory scrutiny and misinformation circulating online, particularly regarding its association with Ripple and the ownership of millions of dollars in Ripple equity.

Earlier this week, Matt Rosendin, CEO of private equity firm CapSign, posted on X (formerly Twitter) that a fund under his company’s umbrella held 4.7 million Ripple shares via Liquidshares, a Linqto-affiliated entity. This claim quickly triggered alarm within the crypto and private investment communities, with many interpreting it as a sign of financial distress at Linqto and potential risk to Ripple share investors.

However, Linqto was quick to counter the allegations. In an official statement, the firm emphasized that the Ripple shares in question are still under the custody of Liquidshares and have not changed hands. “Contrary to the misinformation circulating on social media, we confirm that Liquidshares’ holdings of Ripple remain unchanged,” the company stated.

In an effort to provide additional transparency, Ripple CEO Brad Garlinghouse also addressed the rumors. He clarified that Linqto is indeed a shareholder, owning 4.7 million Ripple shares—but these were acquired exclusively through secondary market transactions from existing Ripple shareholders, not directly from Ripple itself.

“What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market from other Ripple shareholders. Ripple has had no direct dealings with Linqto in this matter,” Garlinghouse stated.

He also added that Ripple ceased all trading activity with Linqto in 2024, making it clear that there has been no active relationship between the two companies since then. Ripple’s distancing from Linqto further reinforces the idea that the blockchain giant is not entangled in any legal or financial issues the investment firm may be facing.

This clarity was crucial, as growing chatter on social platforms had stoked investor fears that shares bought through Linqto might be in jeopardy amid bankruptcy rumors. To mitigate concerns, Linqto revealed that it has introduced a new management team to oversee its operations and ensure the security of client assets. The company has also engaged an independent third-party firm to conduct a comprehensive review of its internal analysis, risk profile, and investor safeguards.

While these measures aim to reassure investors, Linqto is not entirely out of the spotlight. The platform is currently being investigated by both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). These investigations are reportedly tied to potential compliance violations and misleading sales practices, though no formal charges have been filed as of now.

In light of the investigations, Linqto has temporarily paused all transactions on its platform until further notice from the relevant authorities. The company stated that it remains committed to cooperating fully with regulatory agencies and resolving all outstanding issues as efficiently as possible.

Despite the uncertainty, the status of Ripple shares remains unaffected. Investors who purchased Ripple equity through Linqto retain their ownership, and there has been no evidence to suggest otherwise. Legal expert and crypto advocate John Deaton also weighed in on the situation, supporting Ripple’s stance and reiterating that Linqto’s troubles do not endanger the Ripple shares held in user accounts.

This situation highlights a growing tension in the crypto investing space: the fine line between retail access to private equity and the need for strong regulatory oversight. Linqto, as a platform providing such access, now faces the challenge of regaining investor confidence while navigating multiple layers of scrutiny from federal agencies.

As the investigations progress, both Linqto and Ripple appear focused on ensuring transparency. Ripple, for its part, is maintaining a cautious distance, ensuring that its brand and legal standing are not caught up in Linqto’s internal issues.

For investors, the message is clear: Ripple’s shares are safe, and rumors about their security appear to be unfounded. However, caution remains necessary as regulatory processes unfold and Linqto works to resolve its legal and operational challenges.