XRP News Today: Ripple CEO Clarifies XRP Separation From Equity Amid Linqto Controversy

Ripple CEO Brad Garlinghouse has taken steps to clarify the distinction between XRP tokens and Ripple equity, addressing concerns stemming from the controversial sale of pre-IPO Ripple shares by investment platform Linqto. Garlinghouse emphasized that Ripple has no formal relationship with Linqto and did not issue shares to the platform. This clarification comes as regulatory investigations into Linqto’s operations intensify, particularly regarding its offering of “representative units” that purportedly reflect ownership in Ripple.

Garlinghouse sought to reassure investors by underscoring that XRP, the digital asset used by Ripple in some of its payment solutions, is entirely separate from Ripple equity, which represents ownership in the company. He confirmed that Linqto holds approximately 4.7 million Ripple shares, all of which were acquired through the secondary market from existing shareholders, not directly from Ripple. Garlinghouse stated that Ripple has no control over how Linqto structured or sold these units, and he expressed uncertainty about how the platform manages its customer relationships.

This move by Garlinghouse appears to be a strategic effort to shield Ripple from any potential legal repercussions arising from Linqto’s business practices, which have drawn increased scrutiny from U.S. authorities. Linqto froze user accounts and suspended operations in February, leaving over 14,000 investors in a state of uncertainty. Despite the turmoil, Garlinghouse noted that Ripple’s shares have seen significant appreciation. Last month, Ripple announced a $700 million tender offer to repurchase shares at $175 each—a 135% premium over recent private market values. This buyback follows a January offer priced at $125 per share, further highlighting growing confidence in Ripple’s long-term valuation.

The tender offer, open from June 10 to July 9 on Nasdaq Private Market, is available to holders of eligible vested stock or options. While this development could signal potential gains for those holding shares via Linqto, the platform’s ability to fulfill its commitments remains uncertain. In the wake of the controversy, some investors have called for Linqto to refund their original purchase amounts. However, pro-XRP attorney John Deaton argued that such refunds would unfairly benefit the platform by allowing it to retain investor profits. Deaton cited his own investment in Circle, now valued significantly higher than his initial investment, warning that refunds at cost would create an unfair windfall for Linqto.

As regulatory scrutiny intensifies, Ripple is working to protect its reputation and clarify its role. Garlinghouse’s comments serve as a reminder that Ripple equity and XRP are not interchangeable—and that Ripple is not responsible for third-party platforms offering indirect exposure to its shares. This clarification is crucial for investors and stakeholders to understand the distinction between the digital asset and the company’s equity, ensuring transparency and trust in Ripple’s operations.