Attention to the investment firm Linqto has increased following regulatory criticism. Ripple CEO Brad Garlinghouse commented on the situation.
Garlinghouse's Clarification on Linqto
Brad Garlinghouse noted that many investors had questions regarding the purchase of Ripple shares through Linqto. He emphasized that Linqto indeed owns 4.7 million Ripple shares, which were acquired on the secondary market from other shareholders. However, Ripple has never sold its shares to Linqto directly. Garlinghouse also pointed out that Ripple stopped approving Linqto's purchases at the end of last year due to 'growing skepticism.'
John Deaton's Comment on the Situation
John Deaton, a well-known Ripple advocate, commented on the Linqto situation, stating that the SEC is heavily involved in the investigation. He explained that Linqto did not sell pre-IPO shares of Ripple but rather 'shares/units of a Special Purpose Vehicle (SPV) in Ripple,' which has created compliance nightmares.
Linqto's Regulatory Issues
Launched in 2017, Linqto has raised over half a billion dollars in investments but its aggressive marketing has raised regulatory concerns and led to accusations of multiple securities law violations. The company is currently under federal investigation and may file for bankruptcy.
The situation surrounding Linqto and Ripple continues to develop, and it is crucial to monitor both companies' next steps amid regulatory pressure.
