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Linqto, a private investment platform that allows investors to buy shares in preliminary public bidding companies, applied for bankruptcy in Chapter 11. The company also holds 4.7 million undulating shares purchased on the private market.
Linq submitted To bankruptcy with the US District Court for the Southern Texas district on Monday.
The submission came soon after Ripple Brad CEO explained last week that LINQTO owns 4.7 million secondary Ripple shares, but has no business relationship with the company.
“In addition to being a shareholder, Ripple never had a business relationship with LinQto, nor did they participate in our financial rounds,” Garlinghouse said In the post X.
No accurate data on the value of shares
Linqto spokesman refused to provide information on when the company purchased Ripple’s shares on the secondary market.
Based on data from the Platform Platform Forge, LINQTO RIPPLE Share Holdings can have approximately $ 450 million for the secondary market market price of $ 95.5.
However, the court yard on Tuesday established The fact that private LINQTOs offer a vehicle, Liquidshares, holds securities with an “estimated real market value exceeding $ 500 million” for $ 111.
The LINQTO representative did not clarify the value of the ripple of the shares of Caintlegraph. Ripple did not answer immediately to the request for comment.
Federal Investigation Reports
Speculation on potential bankruptcy Linqo first appeared last Monday when The Wall Street Journal reported She faced federal investigation and possible bankruptcy.
The report indicated that the internal investigation showed that “LINQTO customers have never owned securities they thought they did.”
Linqto also reportedly reported its services to customers who may not be entitled to purchase shares in private companies, wsj reported and quoted an internal comment.
“Much of what we have found about previous trading practices in Linqto is worrying,” said the new CEO of Linqto Dan Siciliano, adding: “These practices are not small one -time, observance or common regulatory incorrect steps.”
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Former CEO William Sarris has reportedly tried to offer Ripple 11,000 LINQTO users for at least 60% higher than what she paid, which violated brands above 10% by the US Securities Commission (SEC).
On Tuesday was expected to hear the first day
The first bankruptcy hearing of LINQTO is scheduled for Tuesday at 21:00 UTC, with witnesses, including the main restructuring officer Jeffrey Stein, Kate Mailloux from the restructuring of EPIQ and Ryan Hamilton, Senior Vice President for debt advice and restructuring in Jefferies.
Tuesday’s court brought the details that Linqo did not specifically fulfill the securities laws by incorrectly structuring its limited liability series and lacking permission to transfer issuers such as Ripple.
Linqto closed its platform on March 13 and ended its income operations effectively. Since then, SEC has announced the company of a continuous investigation of a possible violation of LINQTO and its associated companies, according to court filing.
The ripple distanced itself from LINQTO in 2024
Ripple reportedly stopped the approval of LINQTO purchases by its secondary shares at the end of 2024, according to Garlinghouse. This step came at a time when the Tax Industry Regulatory Office (FINRA) completed the review of Linqto’s Broker-Dealer Arm, Linqto Capital.
Linqto’s former main income officer Gene Zawrotny also filed a lawsuit against LinQto and the key former manager of Bill Sarris and Joe Endoso, claiming serious failure to comply with regulations and retaliation.
Messages come the next day after linqto denied Accounts of changing the ripples of Liquidshares in response to x post by Capsign CEO Matt Rosendin.
“Unlike the published X reports, LINQTO confirms that Liquidshares’s shares of Ripple shares remain unchanged and, as Ripple confirmed last week, LinQto still owns 4.7 million shares,” Linqto said.
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