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Linqto Investor Accuses Company of Misdirecting Bankruptcy Case to Texas
ByAinvest
Wednesday, Jul 16, 2025 8:55 pm ET1min read
Linqto, a bankrupt investing platform, is accused of improperly steering its Chapter 11 case to Houston through "venue manipulation." The company's bankruptcy papers claim it is a Delaware corporation with a principal place of business in San Jose, California, and a mailing address in Sunnyvale, California.
An equity holder of bankrupt investing platform Linqto has alleged that the company improperly steered its Chapter 11 case to Houston through "venue manipulation." Linqto filed for Chapter 11 bankruptcy in 2025 after uncovering widespread securities law violations and halting its platform. The company secured $60 million in debtor-in-possession (DIP) financing to preserve asset value and explore strategic alternatives [2].The allegations surfaced as Linqto described itself in bankruptcy papers as a Delaware corporation with a principal place of business in San Jose, California, and a mailing address in nearby Sunnyvale. However, the company's Chapter 11 case was filed in Houston, Texas, leading to accusations of venue manipulation [3].
Venue manipulation is a practice where a company attempts to file its bankruptcy case in a jurisdiction that may be more favorable to its interests. In this case, the equity holder alleges that Linqto's filing in Houston was an attempt to gain an advantage in the bankruptcy proceedings.
The accusations come at a time when Linqto is facing significant financial challenges. The company's bankruptcy was prompted by the uncovering of securities law violations, which led to the suspension of its platform and the initiation of Chapter 11 proceedings. The $60 million in DIP financing is intended to preserve the company's assets while it explores potential strategic alternatives.
The allegations of venue manipulation are a significant development in Linqto's bankruptcy case. If proven, the accusations could have implications for the company's bankruptcy proceedings and its ability to navigate the complex legal landscape of Chapter 11.
References:
[1] https://cointelegraph.com/news/blockfi-bankruptcy-doj-dismiss-35m-lawsuit
[2] https://bondoro.com/linqto/
[3] https://www.wsj.com/articles/linqto-investor-alleges-company-manufactured-texas-venue-for-bankruptcy-case-119aaf08
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