Linqto customers achieved success in the bankruptcy case following a Texas court decision to cancel the $60 million loan plan.
Situation Surrounding Linqto
Linqto, a private investment platform, filed for Chapter 11 bankruptcy in the US. The company was proposed a $60 million loan secured by customer shares, leading to significant backlash from affected customers. Attorney John Deaton filed a formal request for the court to protect customer assets.
Ripple’s Role in the Case
Linqto holds 4.7 million shares of Ripple and other companies. Ripple's attorney, John Deaton, aims to protect Ripple's interests. Reports revealed that former Linqto CEO William Sarris attempted to sell Ripple shares to customers at inflated prices. Ripple CEO Brad Garlinghouse clarified that apart from being a shareholder, Ripple has never had any business relationship with Linqto.
Customer Concerns After Loan Cancellation
With the cancellation of the loan plan, Linqto customers face uncertainty regarding the ownership of their shares, lacking legal documents to confirm their rights. Deaton's warning about a potential FTX-like situation raises alarms, as assets could be liquidated to pay creditors instead of being returned directly to customers.
The cancellation of the $60 million loan represents a significant step toward protecting Linqto customers' assets, but uncertainties around ownership rights and the company's future remain.
