John Deaton Assures Ripple Shareholders Amid Linqto Bankruptcy Fallout

Amidst the Linqto bankruptcy turmoil shaking the crypto private equity sector, prominent attorney John Deaton has stepped forward with reassuring news for retail investors holding Ripple, Circle, and SpaceX shares through the platform. The collapse has particularly impacted the 11,500 investors who purchased shares via Linqto's Special Purpose Vehicles (SPVs).

In a series of public statements, Deaton dismissed speculative claims about the bankruptcy's outcome, emphasizing that such predictions often stem from either ignorance or deliberate fear-mongering. The legal expert highlighted a crucial advantage for affected investors: Linqto's creditors won't take priority over shareholders in Ripple and other private companies acquired through its SPVs.

Contrary to widespread concerns, Deaton confirmed all major holdings remain intact, with Ripple's 4.7 million shares showing significant appreciation since initial purchase. Circle shares have reportedly appreciated over sixfold, while Ripple conducted share buybacks at $175 per share in June 2025 - potentially valuing investor holdings at over $800 million at current rates.

Ripple CEO Brad Garlinghouse clarified the company's position, confirming Linqto's share ownership originated from secondary markets with no direct business ties to Ripple. This statement addressed investor confusion regarding the nature of their holdings and the distinction between Ripple shares and XRP cryptocurrency.

As allegations surface about potential fraudulent activities by Linqto's founder and strategic maneuvering by its current leadership, Deaton urges stakeholders to await judicial review of financial records rather than engage in speculation. The attorney has committed to advocating for investors' interests, noting that cooperative resolution could see funds returned within a year, while protracted litigation could diminish asset value over time.