As investor panic spreads through the XRP community, Ripple CEO Brad Garlinghouse has broken his silence, offering a firm statement that sets the record straight on Ripple’s involvement with troubled private equity platform Linqto.
In a tweet that comes amid mounting scrutiny and a potential bankruptcy filing at Linqto, Garlinghouse wrote:
“To be clear, on Ripple’s end: What we know from our records is Linqto owns 4.7M shares of Ripple, solely purchased on the secondary market from other Ripple shareholders (never directly from Ripple).”
That line says a lot about the controversy that is flaring up. Read on for all the clarity you need.
Linqto in Crisis Mode
Linqto, once touted as a gateway for retail investors to access high-profile private companies like Ripple and Circle, is now facing federal investigations and a looming financial collapse. The platform abruptly halted operations, froze user accounts, and sparked outrage with a proposed refund model that only returns original investments, cutting investors off from any profits made.
Garlinghouse: “No Business Relationship” With Linqto
Garlinghouse didn’t stop at clarifying share ownership. He added:
“Apart from Linqto being a shareholder, Ripple has never had a business relationship with Linqto, nor have they participated in our financing rounds. We stopped approving more Linqto purchases on secondary markets in late 2024 amid growing skepticism.”
This distancing move sends a clear message: Ripple wants no part in the fallout.
And for good reason. The blowback from Linqto’s meltdown is already threatening investor trust across the broader crypto equity market. Pre-IPO platforms, once hailed as democratizing access, are now under fire for lacking transparency and investor protection.
John Deaton Calls for Calm
Should you be panicking? Probably not.
Attorney John Deaton, who is also a Linqto investor, recently addressed the growing anxiety within the XRP community. In a detailed post, he acknowledged how deeply personal the situation is for many – calling out that some investors have their entire savings or retirement funds tied up in the platform.
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Deaton struck a reassuring tone, explaining that Linqto has no debt, that shares are accounted for, and that a bankruptcy process could actually offer protection and transparency.
“There is good reason to believe you’re getting your money back – and it’s very possible to realize the upside of those investments,” he wrote.
His message was clear: stay calm, stay informed, and don’t lose hope.
For now, while Ripple may not be legally tied to Linqto, the scandal’s proximity is enough to raise red flags. Garlinghouse’s clarity certainly makes the picture clearer though.
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FAQs
The Linqto scandal refers to the current crisis faced by the private equity investment platform Linqto. It involves federal investigations, a looming financial collapse, frozen user accounts, and a controversial proposed refund model that only returns original investments, denying users their profits. This has caused significant panic, especially among investors who held shares of companies like Ripple through the platform.
Linqto’s proposed refund model is controversial because it only returns investors’ original investments, effectively cutting them off from any profits made on their holdings. This has sparked outrage among users who invested in high-profile private companies like Ripple through the platform.
