Altcoins News
By James Thorp
1 / 11
Ripple, the blockchain payments giant, has once again landed in a legal gray zone, this time due to its indirect link to Linqto—a now-collapsed investment platform under scrutiny…
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The situation came to light following a Wall Street Journal investigation that revealed Linqto allegedly violated securities laws.
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According to the report, some investors were unaware they were purchasing units in an SPV rather than actual equity in the target companies.
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“What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market from other Ripple shareholders (never directly from Ripple),”…
5 / 11
Garlinghouse added that these shares have appreciated significantly in value, riding the wave of Ripple’s private valuation growth.
6 / 11
The controversy deepens when considering that nearly 5,000 retail investors may have purchased Ripple-related SPV units through Linqto without fully understanding the legal or…
7 / 11
Deaton clarified that while investors did not receive direct Ripple shares, their ownership in SPVs still provides claim to underlying assets.
8 / 11
As Linqto faces ongoing investigations from the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DoJ), investor anxiety is on the rise.
9 / 11
For Ripple, the challenge is reputational. While the company is not directly implicated in the legal case, its name is now associated with a platform accused of exposing retail…
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Meanwhile, bankruptcy proceedings are expected for Linqto, with Deaton assuring that investors will be treated as priority claimants in any repayment structure.
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The full legal outcome remains to be seen, but the case underscores a critical gap in investor education and oversight within the fast-evolving world of pre-IPO and tokenized…
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