Ripple CEO Brad Garlinghouse addressed rising concerns regarding the sale of the company's shares through Linqto, clarifying the company's position amidst investor confusion.
Ripple’s Position on Linqto Share Transactions
According to Garlinghouse, Linqto currently holds approximately 4.7 million Ripple shares, which were not purchased directly from the company. Ripple has never sold shares directly to Linqto. Garlinghouse emphasized that Ripple has never had a business relationship with Linqto, and the company did not authorize Linqto to sell its shares.
Reasons for Limiting Linqto Activity in 2024
In late 2024, Ripple decided to stop approving further share purchases involving Linqto due to growing concerns over investor confusion and brand misrepresentation. This move is intended to protect Ripple's corporate structure.
The Refund Dispute and Investor Reactions
The situation escalated when some investors, believing they were buying into Ripple directly, sought refunds. Although Linqto has started issuing refunds, Ripple made it clear it has no involvement in these transactions and holds no responsibility for any representations made by third-party platforms.
Garlinghouse's statement serves as a reminder of the risks associated with investments in private equity markets, highlighting the need for due diligence by investors.
