Linqto's bankruptcy raises concerns among investors, but the focus is on protecting 11,500 SPV investors. Ripple clarifies that it has no ties to Linqto.
Priority of SPV Investors in Linqto's Bankruptcy
Attorney John Deaton noted that Linqto's legal structure is designed to prioritize 11,500 SPV investors over creditors. This can safeguard investor interests in the event of potential bankruptcy.
No Relationship Between Ripple and Linqto
Ripple has publicly stated there is no business relationship with Linqto. Ripple CEO Brad Garlinghouse mentioned that the company stopped approving secondary market purchases through Linqto in late 2024 due to arising concerns about the platform's operations.
Ongoing Investigations and Their Implications
Legal proceedings and regulatory investigations into Linqto's practices continue. These events could influence future private equity investments in the space. The situation highlights Ripple's legal strategy and its separation from Linqto's insolvency issues.
The situation surrounding Linqto's bankruptcy reveals important aspects of investor protection and demonstrates Ripple's commitment to transparency and separation from the platform's issues.
