Crypto Lawyer John Deaton Sues Linqto Founder William Sarris Over 60% Share Overcharging

Crypto lawyer John Deaton has initiated legal action against William Sarris, the founder of the investment platform Linqto. The lawsuit, filed on July 9, 2025, alleges that Sarris employed illegal tactics that harmed retail investors. Deaton, who is also known for representing XRP holders in the SEC versus Ripple case, submitted this class-action complaint following Linqto's bankruptcy filing. The lawsuit claims that Sarris used unlawful methods to sell cryptocurrency company shares to individual investors. These methods involved incorrect information and unfair pricing, with the stocks marketed including those of firms such as Ripple, Uphold, and Kraken.

Specific accusations in the filing include Linqto allegedly charging investors 60% above the actual share value. The company reportedly created improper exemptions to bypass FINRA and SEC rules. Its sales techniques also broke investor protection laws according to the complaint. Deaton personally sued Sarris following Linqto’s bankruptcy filing. This approach circumvents bankruptcy protections and blocks intervention by other law firms. The lawyer seeks maximum fund recovery for affected Linqto users while preventing reduced monetary settlements.

On social media platform X, Deaton announced two plans. He will publish the complete legal complaint and host a discussion about the lawsuit. Deaton referenced communications with Linqto’s leadership team, including talks with the founder, senior executives, board members, and platform promoters. Responses varied, with some parties claiming ignorance of misconduct while others directly accused founders of fraud. He also stated that with the bankruptcy, a reorganization plan could take effect within one year. This requires both stakeholder groups to reach an agreement. If no agreement occurs, litigation costs may exceed $150 million and take up to two years.

The lawsuit highlights the broader issues within the crypto and securities markets, where unlicensed sales and misleading practices can lead to significant financial losses for investors. The case against Sarris and Linqto serves as a reminder of the importance of regulatory oversight and transparency in the sale of securities, particularly in the rapidly evolving world of cryptocurrencies and digital assets. As the legal proceedings unfold, the outcome of this case could have far-reaching implications for the industry, potentially setting new precedents for how securities are sold and regulated in the digital age.