Linqto company is declared in bankruptcy and drags controversy with Ripple actions

The private investment firm Linqto, SHAREHOLDER OF Ripple, Chapter 11 was hosted after federal investigations, accusations for bad practices and an increasing legal storm. However, Brad Garlinghouse denied that there is some kind of relationship with the company.

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• Linqto faces accusations of having sold shares of Ripple with surcharge to retail investors.
  
• Ripple It was publicly disconnected and denies any commercial relationship with Linqto
  
• Bankruptcy could turn thousands of users into non -guaranteed creditors.

The American platform dedicated to private investments and known for offering access to companies such as Ripple Before his IPO, Linqto, It was officially declared in bankruptcy earlier this week. The application was registered in the Southern District of Texas and represents the culminating point of months of controversies and regulatory investigations.

Linqto offered shares of Ripple

The controversy around Linqto It derives in the fact that the company was presented as a bridge between retail investors and high -profile private companies. Through investment vehicles called Liquidshares, The platform offered participations in more than 111 companies, accumulating a portfolio that exceeds USD $ 500 million in values, including 4.7 million shares of Ripple

However, opacity around the management of these actions, in particular those of Ripple, and the absence of clear documentation on acquisition dates generated suspicions. Although it still has them, and it is estimated that they are currently quoted at USD $ 450 million, Linqto He refused to offer details about his purchase.

Ripple It is unmarked from the company in crisis

Before the suspicion generated by the case, the CEO of Ripple, Brad Garlinghouse, pronounced publicly on social networks for make it clear that your company does not maintain any commercial link with Linqto

“In addition to being a shareholder, Ripple has never had a commercial relationship with Linqto or participated in its financing rounds”Garlinghouse declared on platform X.

Clarification seeks to protect the image of Ripple, A firm that occupies an important place within the sector Blockchain, winning a lot of relevance after their legal battle with the BAGS AND VALUES COMMISSION OF USA. (SEC), which has not yet come to an end despite mutual requests in agreement before the respective court.

Accusations for deceptive practices and regulatory violations

As to Linqto, A report published by Wall Street Journal He revealed that he would have incurred various irregularities, such as Offer private investments to non -eligible investors, not properly transfer the acquired titles and sell shares of Ripple with profit margins that far exceeded the 10% limit established by the Sec.

In a documented case, the ancient CEO of the entity, William Sarris, allegedly offered Ripple actions to the more than 11,000 users of Linqto with prices up to 60% above the acquisition cost. Such facts have been qualified as severe violations by the new administration.

“What we discover about previous practices in Linqto is disturbing”Said Dan Siciliano, current CEO of the firm.

Platform closure and multiple investigations

Linqto officially closed its platform on March 13, suspending all income operations.

At the moment, faces active investigations by the Sec and of US Department of Justice. (DOJ). In addition, the Regulatory authority of the financial industry (Finra) an audit on Capital Linqtoits subsidiary that operated as a registered corridor.

In parallel, Gene Zawrotny, former director of the company, filed a demand for breaches in regulatory compliance.

The first bankruptcy hearing will be held on Tuesday, with key testimonies of figures such as Jeffrey Stein, restructuring director; Kate Mailoux, analyst EPIQ; and Ryan Hamilton, an advisor in debt of Jefferies

According to judicial documents, Linqto would have incorrectly structured its investment vehicles and omitted necessary permits of emitters such as Ripple

In its bankruptcy application, the company also revealed that it seeks financing of up to USD $ 60 million under the scheme of “Debtor in possession”with the support of Sandton Capital Partners, to facilitate reorganization.

However, many retail investors who believed to directly possess private companies could now be considered simple non -guaranteed creditors, facing a prolonged and uncertain process.

Although Ripple It is not directly involved, its indirect association with Linqto It reveals the reputational risks faced by the prominent companies of the crypto sector when their names are linked to problematic platforms, even very superficially.

The case also underlines the urgency of establishing more solid regulatory frameworks for the growing secondary private capital and digital investments, where access has democratized but the standards still do not reach the maturity necessary to protect the consumer.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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