XRP News Today: XRP Advocate Deaton Challenges Linqto's Refund Plan

Attorney and XRP advocate John Deaton has expressed concerns over Linqto's proposed refund plan, asserting that it could unfairly benefit the platform at the expense of investors. Deaton, who invested $30,000 in Circle through Linqto and witnessed his investment grow to $157,000, argues that refunding the original investment amount would deprive investors of their rightful gains. He believes that such a refund would allow Linqto to retain over $120,000 in profits that belong to investors.

The controversy surrounding Linqto intensified after the platform froze user accounts and suspended operations on February 27. Investors have been seeking answers and transparency from Linqto regarding the management of their funds. Deaton's position is that refunding initial investments in assets like Ripple and Circle, which have appreciated significantly, would unfairly enrich Linqto. He contends that investors should be compensated for the full value of their investments, including the gains they have accrued.

Deaton's stance is clear: he believes that any refund plan should prioritize the fair payout of investor gains rather than simply returning the initial investment amounts. This position is part of a broader effort to ensure that investors are treated fairly and that platforms like Linqto are held accountable for their actions. Deaton's advocacy underscores the importance of transparency and fairness in the investment process, particularly in the context of digital assets and blockchain technology.

Deaton has also warned that refunding profitable investments could allow Linqto to retain investor gains unfairly. He emphasized that he is prepared to challenge any plan that deprives investors of their rightful gains. Deaton explained that when Ripple conducted a buyback in June 2024, it offered $175 per share. His average cost was $33. Refunding users at their entry price would allow Linqto to benefit from the share value increase that investors earned.

In an earlier post, Deaton described the situation at Linqto as a “clusterfuck.” He said a detailed article investigating the platform’s operations is likely to be published in the coming days. The announcement drew attention, particularly from members of the XRP community who have used Linqto to invest in pre-IPO companies like Ripple. Meanwhile, Rob Cunningham, founder of the advocacy group Free Linqto, said users are concerned that the company’s reserves have been drained and operations halted, possibly due to mismanagement or deliberate actions.

Linqto, known for offering investors access to private equity, including a reported stake in Ripple Labs, is now facing pressure to restore transparency and protect over 14,000 users. Deaton acknowledged that some users are understandably frustrated, but he drew a clear line between failed projects and profitable ones. For example, he described Polysign as “worthless” and suggested that refunds for that investment might be warranted. But applying the same logic to successful deals would be both unfair and deceptive.

Deaton also warned that third parties may attempt to exploit the situation by preying on emotionally invested investors. He cautioned against selling out of fear or frustration, urging users to be cautious of offers that undervalue their stakes. The situation with Linqto underscores the need for robust regulatory frameworks and investor protections in the rapidly evolving world of digital investments. As more individuals and institutions turn to digital assets, the importance of ensuring fair and transparent practices becomes increasingly critical. Deaton's efforts to fight for fair payouts for investors serve as a reminder of the ongoing challenges and complexities in this space.