Linqto is under fire. Ripple is stepping back.
Federal investigations are closing in. The SEC and DOJ are now probing Linqto for possible securities fraud and share price manipulation. Ripple, meanwhile, is making one thing clear — it had nothing to do with it.
🚫 No Ties, No Endorsement
Ripple CEO Brad Garlinghouse broke the silence on Twitter. He confirmed Ripple never partnered with Linqto. The 4.7 million Ripple shares Linqto sold? They came from existing shareholders on the secondary market — not from Ripple.
By the end of 2024, Ripple stopped approving Linqto-related transactions. The company cited concerns over how those shares were being marketed and sold. No Ripple treasury funds were involved. No XRP was affected.
⚠️ Linqto’s Legal Mess
Linqto promised retail investors access to big-name startups. However, it’s now accused of pushing inflated prices and running misleading campaigns.
One example? “Spike Day” — a high-pressure marketing push that allegedly drove Ripple share prices up by 60% in one day.
Worse, Linqto may have sold shares to non-accredited investors and even buyers in sanctioned countries. That’s a direct violation of securities laws.
Now, Linqto has frozen accounts, stopped operations, and is preparing for Chapter 11 bankruptcy. If that happens, investors could lose everything and be classified as unsecured creditors.
🧾 SPVs: Not What They Seem
Here’s the catch: buyers didn’t own Ripple shares. They owned units in SPVs — special funds set up by Linqto.
As Ripple CTO David Schwartz and attorney John Deaton explained, SPVs offer exposure, not direct equity. Many investors didn’t realize the difference.
And many — an estimated 4,000 to 5,000 — weren’t accredited at all. That’s a problem.
🌐 Ripple’s Focus Remains on Innovation
While this unfolds, Ripple is focused on building.
From XRPL expansion to new DeFi infrastructure, the company is driving tech forward. Learn more in this deeper dive:
🔗 Ripple’s Bold Moves: XRPL Tech Boom and DeFi Revolution
Still, Ripple knows its reputation matters. That’s why it moved fast to separate itself from the Linqto fallout.
🔍 What This Means
This scammer isn’t just Linqto’s problem. It exposes bigger risks:
- Retail access to pre-IPO shares — with little protection
- Platforms using SPVs to bypass regulations
- A lack of clarity and trust in private share markets
Ripple wasn’t involved. But the story still touches them. And investors everywhere are paying attention.
🧠 Final Thought
Linqto played a risky game. Ripple won’t play along.
This scandal shows how fintech can blur the lines between innovation and exploitation. The rules are changing. The regulators are watching. And names like Ripple — no matter how reputable — must maintain a distance from bad actors.