Linqto, a private investment platform and Ripple shareholder, filed for Chapter 11 bankruptcy on July 8, 2025, in the U.S. District Court for the Southern District of Texas. The company’s filing followed the shutdown of its operations on March 13.
Linqto offered access to pre-IPO shares of private firms, including Ripple. Ripple CEO Brad Garlinghouse stated the firm owns 4.7 million secondary Ripple shares but has no formal relationship with Ripple.
“Ripple has never had a business relationship with Linqto, nor have they participated in our financing rounds,”
The bankruptcy process includes restructuring efforts and scheduled hearings. The first hearing is set for July 9 at 9:00 PM UTC.
Ripple Shares Among $500M Held by Linqto Investment Arm
Linqto did not disclose when it purchased Ripple shares. The private market platform Forge listed Ripple’s secondary share price at $95.50, which would value Linqto’s stake at about $450 million.
In a court document, Linqto stated its investment vehicle, Liquidshares, holds securities from 111 companies. The total estimated value exceeds $500 million.
The firm denied recent claims of altering its Ripple holdings.
“Linqto confirms that Liquidshares’ holdings of Ripple shares remain unchanged,”
it said in a public statement, following an X post from CapSign CEO Matt Rosendin.
SEC Targets Linqto for Securities Law Violations
An SEC investigation is underway into Linqto’s activities. A Wall Street Journal report on June 30 revealed internal findings suggesting customers may not have held legal ownership of the securities they believed they purchased. Some buyers also may not have qualified to invest under U.S. law.
Court filings say Linqto improperly structured its limited liability investment vehicles and failed to obtain issuer permissions for share transfers, including from Ripple.
New CEO Dan Siciliano responded to the findings, stating,
“Much of what we discovered about the prior business practices at Linqto is disturbing.”
Executives Accused of Overpricing Ripple Shares
Former CEO William Sarris allegedly sold Ripple shares to users with a 60% markup, far exceeding the SEC’s 10% cap on secondary market offerings.
Former chief revenue officer Gene Zawrotny filed a lawsuit against Sarris and former COO Joe Endoso, citing compliance failures and retaliation.
Ripple stopped approving Linqto’s purchases of its shares in late 2024. This decision followed a FINRA review of Linqto Capital, the platform’s broker-dealer unit.
The SEC’s investigation into Linqto and its affiliates continues. More details are expected as court proceedings move forward.
