Ripple Shares Secure Despite Linqto Bankruptcy Says Attorney

Attorney John Deaton has reassured investors that Ripple shares are secure despite the bankruptcy of Linqto, an investment platform. Deaton emphasized that the legal structure of Linqto prioritizes its 11,500 SPV investors ahead of creditors or shareholders, providing a strong chance for investors to recover their funds. This news comes as a relief to many who were concerned about the potential impact of Linqto's financial troubles on their investments.

Despite the chaos surrounding Linqto's bankruptcy, Deaton confirmed that core assets, including 4.7 million Ripple shares, remain on the books and have significantly appreciated. Ripple's shares were purchased on the secondary market from other Ripple shareholders, not directly from Ripple itself. This clarification is crucial as it helps to distinguish between Ripple's direct holdings and the secondary market transactions that Linqto was involved in.

Ripple CEO Brad Garlinghouse also addressed the issue, confirming that Linqto owns 4.7 million shares of Ripple. He stressed that Ripple has no business ties with Linqto and did not participate in their resale schemes. Garlinghouse also clarified that XRP, the cryptocurrency, has nothing to do with these shares, addressing the confusion or misinformation that many investors had.

Deaton urged investors to remain calm, emphasizing that the investments are still accounted for and that there is no need for immediate concern. He also noted that the truth will come out as internal emails and financial records will be revealed in court. Deaton is focused on protecting the investors and helping them recover their funds, urging all sides to work together to approve a plan as quickly as possible.

The situation has caused some panic among investors, with fears of refunds and bankruptcy risks looming large. However, Deaton's reassurance that investments are still accounted for has helped to alleviate some of these concerns. The bankruptcy of Linqto has also raised questions about the transparency and accountability of investment platforms, highlighting the importance of due diligence and clear communication between platforms and their users.

As the situation continues to unfold, it will be important for all parties involved to work together to ensure that investors' interests are protected. Deaton's involvement and reassurance have provided a sense of hope and security for investors during this uncertain time. The focus now is on protecting the investors and helping them recover their funds as quickly and efficiently as possible.