Ripple CEO Clarifies No Direct Link to Bankrupt Linqto

Ripple’s CEO, Brad Garlinghouse, has clarified the company’s position regarding Linqto, a private equity platform that recently faced bankruptcy proceedings. Garlinghouse confirmed that Linqto acquired 4.7 million shares of Ripple exclusively through secondary markets, with no direct business relationship between the two companies. This clarification came in response to investor concerns following Linqto’s decision to freeze user accounts.

Garlinghouse emphasized that Ripple has never had a direct business relationship with Linqto, nor has Linqto participated in Ripple’s financing rounds. The company stopped approving Linqto’s secondary purchases in late 2024 due to growing skepticism. This move was aimed at distancing Ripple from Linqto’s operational issues and maintaining investor trust in the pre-IPO platform sector.

Linqto suspended operations last week, proposing to refund only the original investments to users while denying potential profits. Federal authorities are currently investigating the platform’s activities. Attorney John Deaton, a Linqto investor, urged calm among affected users, noting that Linqto carries no debt and holds documented assets. He suggested that bankruptcy proceedings could establish clearer investor protections and potentially enable eventual returns for investors.

Deaton acknowledged that some investors placed their retirement funds on Linqto, highlighting the significant impact of the freeze on their financial well-being. He maintained that proper accounting could enable eventual returns, but the regulatory outcomes will determine the next steps for frozen accounts. The recent events have raised questions about oversight in the pre-IPO platform sector, where secondary markets allow trading of private company shares before public listings.

Ripple’s clarification aims to reassure investors and distance the company from Linqto’s operational issues. Garlinghouse’s statements underscore Ripple’s commitment to transparency and investor protection, emphasizing that the company has no direct involvement in Linqto’s activities. The freeze on Linqto’s accounts has weakened investor trust in pre-IPO platforms, highlighting the need for stricter regulatory oversight in this sector.