Linqto Inc. files for Chapter 11 bankruptcy in Texas

Linqto Inc. files for Chapter 11 bankruptcy in Texas

Linqto Inc., an investment platform, has filed for Chapter 11 bankruptcy in Texas, raising concerns among investors. The company, which had 11,500 SPV investors, faces significant financial distress [1].

John Deaton, a bankruptcy attorney representing Linqto, has reassured investors that their investments are secure. Deaton emphasized that the legal structure of Linqto prioritizes its SPV investors ahead of creditors or shareholders, providing a strong chance for investors to recover their funds [1]. Despite the bankruptcy, core assets, including 4.7 million Ripple shares, remain on the books and have appreciated significantly [1].

Ripple CEO Brad Garlinghouse clarified that Linqto owns 4.7 million shares of Ripple, purchased on the secondary market from other Ripple shareholders, not directly from Ripple itself. Garlinghouse stressed that Ripple has no business ties with Linqto and did not participate in their resale schemes [1]. He also emphasized that XRP, the cryptocurrency, has nothing to do with these shares, addressing any confusion or misinformation [1].

The bankruptcy of Linqto has raised questions about the transparency and accountability of investment platforms, highlighting the importance of due diligence and clear communication between platforms and their users [1]. The situation has caused some panic among investors, but Deaton's reassurance that investments are still accounted for has helped alleviate these concerns [1].

As the situation continues to unfold, it will be important for all parties involved to work together to ensure that investors' interests are protected. Deaton's involvement and reassurance have provided a sense of hope and security for investors during this uncertain time. The focus now is on protecting the investors and helping them recover their funds as quickly and efficiently as possible [1].

References:
[1] https://www.ainvest.com/news/ripple-shares-secure-linqto-bankruptcy-attorney-2507/