Ripple CEO Clarifies Position Amid Linqto Bankruptcy and Regulatory Scrutiny

In a significant development, Linqto, an investment platform that enabled retail investors to access private company shares including Ripple's, is reportedly facing bankruptcy. According to a June 30 Wall Street Journal report, the firm is under joint investigation by the U.S. SEC and Department of Justice regarding its sales practices.

Ripple CEO Brad Garlinghouse has moved to clarify the company's position, emphasizing that Ripple has no business relationship with Linqto. In a July 2 social media statement, Garlinghouse revealed: 'Linqto holds 4.7 million Ripple shares, all acquired through secondary market transactions from existing shareholders - never directly from Ripple.'

The executive further differentiated between XRP tokens and Ripple equity shares, stressing that Linqto's issues exclusively concern the latter. 'I cannot speak to Linqto's client management practices regarding these share representations, but I can confirm their ownership position has appreciated in value,' Garlinghouse added.

While Linqto faces potential restructuring amid regulatory probes, Ripple has severed secondary market share approvals through the platform since late 2024. Garlinghouse's intervention aims to reassure investors that Ripple's core operations and share valuation remain unaffected by Linqto's financial and legal challenges.