Key Points:
- Ripple’s lawyer opposes Linqto’s bankruptcy involving Ripple shares.
- No financial risk to Ripple’s assets or XRP token.
- Investigation into Linqto’s past business practices continues.
Linqto, a private investment platform and Ripple shareholder, filed for Chapter 11 bankruptcy in July 2025 amid investigations into its handling of private equity investments in Ripple and other firms.
The bankruptcy highlights challenges in crypto investment platforms, affecting Ripple’s pre-IPO equity but not XRP token or broader market operations, underscored by CEO Brad Garlinghouse’s statements.
Linqto’s Bankruptcy Filing and Ripple’s Stance
Linqto, a private investment platform, filed for Chapter 11 in July 2025 due to legal challenges. Ripple, a significant stakeholder affected, maintains distance from Linqto’s practices.
Ripple’s leadership, including CEO Brad Garlinghouse, publicly states Ripple has no business with Linqto outside of shareholder status. Linqto holds approximately 4.7 million Ripple shares.
“Apart from Linqto being a shareholder, Ripple has never had a business relationship with Linqto, nor have they participated in our financing rounds.”
– Brad Garlinghouse, CEO, Ripple
Impact on Ripple and Regulatory Implications
The bankruptcy filing impacts Linqto’s assets but does not affect Ripple or the XRP token financially. Pre-IPO equity exposure is the primary concern.
Ripple’s assets remain secure. Brad Garlinghouse confirms no treasury or funds are at risk, as all affected assets are external holdings.
Linqto’s bankruptcy showcases financial scrutiny within the crypto market, stressing the importance of regulatory compliance. Ripple distances itself from these issues.
Potential regulatory outcomes center on Linqto’s practices. SEC investigations continue as Ripple maintains its regulatory cooperation. Historical trends indicate these processes generally do not affect token values unless involving major token holders.
