The recent collapse of the Linqto platform has impacted investors, including those who invested in Ripple and other companies. Lawyer John Deaton has stated his commitment to protect the interests of affected parties.
Investors Come First in Court
Lawyer John Deaton emphasized that within the bankruptcy proceedings, Linqto has no major creditors in front of its customers. This means that the 11,500 customers who invested in Ripple and other companies through Linqto's SPV units have first dibs on getting their money back. Regular shareholders of Linqto are at the end of the line, which provides investors a real chance to recover their investments.
Shares Remain Accounted For
Despite the current chaos, Deaton confirmed that investments are still in place. Specifically, shares of Ripple, Circle, Kraken, SpaceX, and others remain accounted for. Ripple shares total 4.7 million and have appreciated in value since purchase. Circle shares have increased more than six times the original purchase value. If the buyback price of Ripple shares in 2025 is used, the investors' portion could be worth over $800 million.
Ripple's Response and Fraud Rumors
In response to the controversy, Ripple CEO Brad Garlinghouse confirmed that Linqto owns 4.7 million Ripple shares bought from secondary market sellers, not from Ripple directly. He stressed that XRP has nothing to do with these shares, which is crucial for the numerous investors who may have been misled. Some former employees and the Wall Street Journal claim that Linqto's founder may be involved in fraudulent practices and severe securities violations, while others suggest that the current CEO is leveraging the bankruptcy strategically. Deaton urged people to stop guessing, as the truth will come out in court.
The situation surrounding Linqto remains uncertain, but Deaton is focused on protecting investors and helping them recover lost funds.
