Linqto, a private investment platform that allows investors to buy shares with pre-initial public offers companies, has filed for the losses of chapter 11. The company also holds 4.7 million ripple shares in the private market.
Linqto Filed For losses in the US District Court for the Southern District of Texas on Monday.
The filing arrived soon after Ripple CEO Brad Garlinghouse clarified last week that Linqto owned 4.7 million second -sharing Ripple but no business relationship with the company.
“Apart from Linqto as a shareholder, Ripple never had a business relationship with Linqto, nor did they participate in our financing rounds,” Garlinghouse Says In an x post.
There is no accurate data on sharing value
A spokesman for Linqto has refused to provide information when the company purchased Ripple sharing in the second market.
Based on data from the private market platform, Linqto’s Ripple Share Holdings could cost about $ 450 million in the second market sharing price of $ 95.5.
However, a court filing on Tuesday Nakasa said Linqto’s private – securities that offer vehicles, liquidshares, hold security with “estimated fair market value of over $ 500 million” in 111 release companies.
The Linqto representative did not clarify the value of the companies’ ripple shares the cointelegraph’s ripple. Ripple did not immediately respond to a request to comment.
Federal Investigation Reports
The speculation about Linqto’s potential losses first appeared last Monday, when the Wall Street Journal reported It faces federal investigation and is a possible filing of losses.
The report suggested that an internal investigation became evidence that “Linqto customers never owned the security they thought they had done.”
Linqto is said to be selling its services to customers who may not be eligible to buy stakes at private companies in the first, WSJ reported, citing an internal memo.
“Much of what we discovered about earlier business skills in Linqto is disturbing,” Linqto’s new CEO Dan Siciliano has been reported, and added: “These skills are not a small one-off, compliance or common regulations that are false hope.”
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Former CEO William Sarris has been reported to have tried to offer Ripple sharing with 11,000 Linqto users at a price of at least 60% higher than it paid, violating the ban on markups of more than 10% of the US Securities and Exchange Commission (SEC).
Looking forward to hearing on the first day on Tuesday
The first hearing on Linqto’s losses were scheduled for Tuesday at 9:00 PM UTC, with witnesses along with Chief Restructuring Officer Jeffrey Stein, Kate Mabloux from Epiq Corporate Restructuring and Ryan Hamilton, senior vice president for debt advisory and restructuring in Jeffers.
A Tuesday’s court that filed a detailed detailed Linqto failed to comply with security laws by improperly structuring its series with limited liability companies and no transfer permission from those who gave such as Ripple.
Linqto closed its platform on March 13, which effectively ends with revenue operations. The SEC from the firm said an ongoing investigation into potential violations of Linqto and its affiliates, according to court filings.
Ripple was self -deprecated from Linqto in 2024
Ripple reported to stop approved of Linqto purchases of its second sharing in late 2024, according to Garlinghouse. The move arrived at the time the Financial Industry Regulatory Authority (Finra) completed a review of the arm-dealer arm of Linqto, the Linqto capital.
Former Linqto income official Gene Zawrotny, also filed a lawsuit against Linqto and major former executive Bill Sarris and Joe Endoso, who is said to be a serious failure in obedience and revenge.
The news will come the next day after Linqto declined The allegations of changes in Ripple’s liquidshares’ in response to an X post by Capign CEO Matt Rosendin.
“Contrary to published X reports, Linqto confirms that Liquidhares’ holds of ripple shares remain unchanged, and as Ripple confirmed last week, Linqto continues to own 4.7 million shares,” Linqto said.
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