Ripple CEO: Brad Garlinghouse Clarifies Linqto Relationship Amid Legal Scrutiny and Investor Confusion
- Samantha
- Jul 2
- 2 min read
Ripple CEO Brad Garlinghouse has addressed rising concerns from retail investors who believed they had purchased Ripple shares through Linqto, a private equity platform now under investigation by U.S. authorities. The statement comes as Linqto faces mounting legal and financial troubles that could leave thousands of investors exposed.
Garlinghouse clarified that Linqto owns 4.7 million Ripple shares, but these were acquired exclusively through the secondary market—from other existing shareholders—not directly from Ripple. “Ripple has never had a business relationship with Linqto,” Garlinghouse emphasized. “They have not participated in any of our funding rounds, and we ceased approving their share acquisitions in late 2024 due to growing skepticism.”
This announcement follows a report by The Wall Street Journal, which revealed that Linqto is currently under investigation by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). The probes reportedly focus on unauthorized sales of private shares, inflated markups, and misleading investor practices.
Linqto, once known for offering retail investors access to pre-IPO shares of companies like Ripple, has since paused transactions and is facing potential bankruptcy, according to sources close to the matter. This has left many questioning the validity of their investments.
For those who believed they were buying direct equity in Ripple, the situation is now highly uncertain. Since Linqto’s Ripple shares were purchased on the secondary market, it is unclear whether investors hold legitimate ownership, especially if their transactions were improperly executed or misrepresented.
What This Means for Investors:
No Direct Ownership: If you bought Ripple shares via Linqto, you may not legally own Ripple stock.
Legal Risks: Linqto is under active SEC and DOJ investigations, which could impact your investments and any future claims.
Ripple’s Position: Ripple has distanced itself from Linqto, stating it never endorsed or partnered with the platform.
What You Should Do:
Monitor Regulatory Updates: Stay informed about developments in the SEC and DOJ investigations.
Seek Legal Counsel: If you’ve invested via Linqto, consider consulting a securities attorney to understand your rights and potential remedies.
As retail access to pre-IPO investments grows, so do the risks. This situation serves as a stark reminder to verify the legitimacy of platforms and to be cautious when investing in private equity deals.
