The escalating situation around Linqto has sparked concern among XRP investors. Ripple CEO Brad Garlinghouse decided to clarify his position, emphasizing the lack of business ties between the companies.
Linqto in Crisis
Linqto, once viewed as a platform for retail investors, is now facing federal investigations and potential financial collapse. The platform has halted operations, frozen user accounts, and sparked protests due to a proposed refund model that only returns original investments without considering profits.
No Business Relationship
Garlinghouse clarified that while Linqto owns 4.7 million shares of Ripple, these shares were purchased on the secondary market from other shareholders. He emphasized that Ripple has never had a business relationship with Linqto and that the activity of selling shares through secondary markets was stopped in late 2024.
John Deaton Calls for Calm
Attorney John Deaton, who is also a Linqto investor, urged investors not to panic, pointing out that Linqto has no debt and shares are accounted for. He noted that the bankruptcy process could provide protection and transparency, and there is a likelihood of funds being returned.
The situation with Linqto remains tense, but the clarifications from Garlinghouse help to clarify Ripple's position. Investors are advised to stay calm and remain informed.
