Ripple CEO Clarifies No Business Ties With Troubled Linqto Amid Bankruptcy Fears

Ripple CEO Brad Garlinghouse has addressed the ongoing controversy surrounding the troubled private equity platform Linqto, clarifying Ripple's involvement and setting the record straight amidst investor panic. In a recent tweet, Garlinghouse stated that Linqto owns 4.7 million shares of Ripple, which were solely purchased on the secondary market from other Ripple shareholders, and not directly from Ripple. This statement comes as Linqto faces potential bankruptcy, federal investigations, and a financial collapse, leading to the freezing of user accounts and a proposed refund model that has sparked outrage among investors.

Garlinghouse further emphasized that Ripple has never had a business relationship with Linqto and that the company has not participated in any of Ripple's financing rounds. He also noted that Ripple stopped approving more Linqto purchases on secondary markets in late 2024 due to growing skepticism. This distancing move by Ripple aims to avoid any potential fallout from Linqto's meltdown, which has already threatened investor trust across the broader crypto equity market. Pre-IPO platforms, once praised for democratizing access, are now under scrutiny for lacking transparency and investor protection.

Attorney John Deaton, who is also a Linqto investor, has called for calm within the XRP community. In a detailed post, Deaton acknowledged the personal impact of the situation on many investors, some of whom have their entire savings or retirement funds tied up in the platform. He reassured investors that Linqto has no debt, that shares are accounted for, and that a bankruptcy process could offer protection and transparency. Deaton's message was clear: stay calm, stay informed, and don't lose hope. He believes there is a good reason to believe investors will get their money back and that it is possible to realize the upside of those investments.

While Ripple may not be legally tied to Linqto, the scandal's proximity is enough to raise red flags. Garlinghouse's clarity on the matter has helped to make the picture clearer for investors. However, the broader implications of Linqto's collapse on the crypto equity market remain to be seen. The situation serves as a reminder of the importance of transparency and investor protection in the rapidly evolving world of digital assets.